Projects Today November

01] PT cover November 2014.qxp

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02 IFC] UTC advt.qxp

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03] DNS Automotive advt.qxp

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04] they said_editor.qxp

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THEY SAID "The 'Make in India' campaign resonates Siemens India's thoughts as well. Indians and India are renowned for innovation. We start with an idea and then work backwards to develop state-of-the-art manufacturing facilities. This enables us to do things quicker and better than anyone else. Additionally, being a young country, we have immense raw talent which can be tapped and developed into a skilled workforce. Subsequently, manufacturing activities are carried out by highly-skilled people who are completely motivated to deliver best quality products at competitive prices. India definitely has the capability, inclination towards innovation and the skill sets. Hence, we urge the world to come and make in India."

- Sunil Mathur, CEO, Siemens India

November 2014 Editor Advisor (Editorial) Sub-Editor

: Shashikant Hegde : Dr M S Kapadia : Ronnie Foulds

RESEARCH Associate Vice President

: Mallika Jain

DESIGN & PRODUCTION Art Director

: Satish Kamath

Graphic Designers

"This move by the Government is a ray of hope for the industry that will pave the way for more such progressive policies and will boost the real estate sector in India. It is a step taken towards achieving the goal of low-cost and affordable housing for all by the year 2022, envisioned by the New Modi-Government during its formation, earlier this year. Lately, the real estate sector in India has been going through a rough time with acute funding pressure. Projects that commit at least 30% of the total cost for low-cost affordable housing would be exempted from minimum builtup area and capitalization requirements. With these reforms in place, investors would be able to use funds quite well allowing property developers to carryon the projects in time. These measures will also support the developers to pursue housing projects which will, again, be the backbone of the Government's 'Smart City' dream. Small land parcels within the city will now get into active real estate market and will be better utilized helping eventually see an increase in the participation of small local builders.

- Sumit Jain, Co-Founder & CEO, CommonFloor.com

"Overall this is a positive move and only reflects the government's intention towards reviving the sector.

Relaxing FDI norms will open up the capital markets thereby attracting investments into the sector. It's also a great fillip for affordable housing which only creates more opportunities in the market especially for investors, who will benefit the most with the 3 year lock in period now being revised. However, we need to understand that FDI will not begin flowing within the next 24 hours as we foresee another 8-12 months for the decision to bear fruit".

- Shishir Baijal, Chairman & Managing Director, Knight Frank India

As part of our investment plans of more than â‚Ź10 billion in Asia Pacific between 2013 and 2020, we want to strengthen our production platform in India. With our new Dahej site we are enhancing our position as supplier with local production and can even better 'create chemistry' with our customers. With our advanced technologies and the commitment of our team in India, we will both contribute to and benefit from India's huge market potential.

- Michael Heinz, Member of the Board of Executive Directors, BASF SE 4 PROJECTS TODAY NOVEMBER 2014

: Madhukar Ingavale, Nitin Parkar, Rajendra Vichare

SALES & MARKETING Sr Vice President

: Sanjeev Kumar Singh

Subscription

: Rosebin Mukadam

Head - Circulation

: Raju Chendavankar

DISCLAIMER This magazine is for information purposes only. All rights reserved.

All copyright in this magazine and related works is solely and exclusively owned by Economic Research India Pvt. Ltd. While due care has been taken during the compilation to ensure that the information is accurate to the best of Economic Research India Pvt. Ltd.' knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.

Economic Research India Pvt. Ltd. neither recommends nor endorse any specific products or services that may have been mentioned in this magazine and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this document.

Economic Research India Pvt. Ltd. shall not be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this magazine. “Regarding advertisements readers are recommended to make necessary enquiries before acting upon or entering into any commitment in relation to any advertisement published in this publication. Economic Research India Pvt Ltd does not vouch for any claims made by advertisers of products and services. The Directors, Printer, Publisher and Editor of Economic Research India Pvt Ltd shall not be held liable for any consequences, in the event such claims are not honoured by the advertisers".

Printed and published by Shashikant Hegde on behalf of Economic Research India Pvt.Ltd., published from Sterling House, 5/7 Sorabji Santuk Lane, Opp.Dr.Cawasji Hormasji Lane, Marine Lines (E), Mumbai - 400 002 and printed at Satyam Print House, A-2/112 A, 144 & 146, 1st Floor, Shah & Nahar Industrial Estate, Dhanraj Mill Compound, Lower Parel, Mumbai - 400 013.

Editor : Shashikant Hegde.

ProjectsToday (Division of Economic Research India Pvt. Ltd.) Sterling House, 5/7, Sorabji Santuk Lane, Off Dr. Cawasji Hormasji Lane, Marine Lines (E), Mumbai - 400 002, Tel: (022) 6101 1755 Fax: (022) 67121813, E-mail: editorial@projectstoday.com Website: www.projectstoday.com

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CONTENTS

Indian Investment Abroad A brief view on outward FDI reported during the month.

Special Report World Bank Report on Doing Business looks at how business regulations determine whether good ideas can get started and thrive or will falter and wither away. An overview.

19

Fresh Investment In October 2014, 609 new projects worth `70,580 crore were announced. Read to know more.

Orders and Contracts Major orders and contracts bagged by Indian and foreign companies during the month.

FDI An insight into the foreign inflow and latest policy developments during October 2014

The month of October 2014, saw 2,026 project tenders worth `47,737 crore being issued. Read to know more.

14 18

9 Sectoral overview

Tender Review

11

12

A brief overview on project developments that took place during October 2014, in the Manufacturing, Energy, Transportation, Construction and Social Service segment.

25

PROJECTS TODAY NOVEMBER 2014 5

06-08] Economy Review.qxp

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ECONOMY REVIEW

Hesitant Recovery n the basis of an assessment of the current and evolving macroeconomic situation, RBI has kept policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent and cash reserve ratio at 4.0 per cent in its fourth bi-monthly monetary policy statement released on 30 September. Consequently, the reverse repo rate under the LAF also remains at 7.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 9.0 per cent. It has, however, reduced the liquidity provided under the export credit refinance (ECR) facility from 32 per cent of eligible export credit outstanding to 15 per cent with effect from October 10, 2014 The recent cautious optimism that is building in the economy on the back of improved business sentiment needs to be placed on solid foundations through a step-up in investment, says the apex bank.

O

IIP Factory output stagnated for the second straight month in August. Even as mining and power infrastructure improved, manufacturing went deeper into red. Y-o-Y erosions during July-August brought down the cumulative growth in manufacturing from 3.8 per cent in Q1 to 1.8 per cent by August-end. The feat has also worryingly come after a decline during the first five months of 2013-14. Mining IIP showed 2.5 per cent growth, but it has come over 3.6 per cent decline during April-August 2013. Powered by record increase in thermal power, electricity consolidated with 11.7 per cent strong growth, from 4.5 per cent a year ago. In mining, coal production expanded 7.2 per cent, with August recording 13 per cent expansion; though petroleum crude and natural gas remained in the negative zone.

In manufacturing, eleven out of twenty-two industries at 2-digit NIC-levels showed positive growth during August and fourteen over April-August.

Industries showing negative growth during April-August included wearing apparel: (-) 8.7 per cent, publishing & printing: (-) 5.9 per cent, office & computing machinery (-) 41.3 per cent, Radio, TV, communication equipment: (-) 50.1 per cent, motor vehicles: (-) 3.9 per cent, wearing apparel (-) 8.7 per cent and coke, petroleum refinery: (-) 2.2 per cent. Fourteen industries recording positive growth rates included food products (6.7 per cent), basic metals (13.9 per cent), nonmetallic mineral products (7.9 per cent), machinery & equipment (5.6 per cent), transport vehicles (12 per cent) and electrical machinery (21.8 per cent).

Capital goods go deeper in decline In use-based classification, capital goods index declined 11.3 per cent in August, against 2 per cent erosion in this month a 6 PROJECTS TODAY NOVEMBER 2014

year ago and 3.9 per cent in the preceding month. This is steep deterioration after 14 per cent increase during Q1, which nevertheless helped the sector post 4.3 per cent growth during April-August. Among the other material inputs in project execution, cement production increased 11 per cent and alloy, non-alloy steel 2 per cent cumulatively. Consumer durables index has kept sinking, recording 15.5 per cent decline in August and 9.7 per cent over April-August, both rates indicating degeneration into deeper red. Consumer durables include passenger cars, two-wheelers, gems & jewellery, etc.

Consumer non-durables stagnated at year-ago level. Basic goods and intermediate goods improved upon their year-ago feat.

Infra industries The eight core industries, which apart from their bearing on industry performance constitute 38 per cent of broader IIP, expanded 5.8 per cent in August and 4.4 per cent (4.4 per cent) cumulatively during the first five months of the ongoing fiscal 2014-15. The feat was no doubt helped by double-digits strong growth in power generation, but cement also posted 11.3 per cent increase cumulatively. Coal too increased 7.3 per cent during April-August. However, crude oil, natural gas and refinery throughput declined cumulatively and alloy, non-alloy steel rose at a subdued two per cent.

Port traffic The seaborne traffic at the country's 13 major ports increased 11 per cent in September, the best rate over more than 18 months. The port traffic had gone up 1.5 per cent in August and five per cent in September 2013. Barring Cochin and New Mangalore that witnessed y-o-y erosion, 11 ports recorded positive growth; with seven recording double-digits expansion.

The four per cent decline in freight in Cochin during September has come after 17 per cent spurt in August and 32 per cent in September 2013, and was due to lower POL traffic.

Thirteen per cent decline in traffic in New Mangalore was due to lower POL and thermal coal.

Among the cargoes, barring heavy weight POL and iron ore, all other commodities showed double-digit increase, with other industrial cargo shooting up 39 per cent annually during the month. Iron ore volume declined 58 per cent and POL nominally by 0.5 per cent. Both these commodities are showing cumulative decline also. Finished/raw fertilizers increased 30 per cent, over 22 per cent in August. Thermal coal quantity handled at the ports went up 27 per cent, twice the rate in the preceding month, Coking coal and containers increased 13 per cent each. The 39 per cent increase in other industrial cargo

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Seaborne cargo at major Ports during H1 of 2014-15 000' tonne

% increase

Kolkata Dock System

6,698

10.62

Haldia Dock Complex

14,062

-5.53

Total: Kolkata

20,760

-0.86

Paradip

35,479

3.99

Visakhapatnam

30,588

5.71

Kamarajar (Ennore)

14,649

15.56

Chennai

26,717

1.78

V.O. Chidambaranar (earlier Tuticorin)

15,716

11.52

Cochin

11,355

4.68

New Mangalore

18,230

-5.91

6,307

22.25

Mumbai

29,831

8.16

JNPT

32,313

4.47

Kandla

46,539

1.28

288,484

4.20

Mormugao

Total

Classification by cargo POL

94,246

-0.27

Iron ore

9,144

-22.80

Finished Fertilser

3,641

4.90

Raw fertiliser

4,390

25.72

Thermal Coal

39,598

8.54

Coking Coal

16,071

-0.27

Containers

60,640

4.85

Other cargo

60,754

14.37

288,484

4.20

Total

during September was over 9 per cent in this month a year ago and 7 per cent in the preceding month.

Taking H1 period of the ongoing fiscal 2014-15, seaborne traffic at the ports increased 4.2 per cent annually, against 2.3 per cent in this period a year ago. Only two ports, Haldia Dock Complex and New Mangalore recorded around 6 per cent lower volumes. Among the eleven ports recording positive growth, four ports enjoyed double-digits growth in business: Mormugao recorded 22 per cent increase on the strength of other industrial cargo, thermal coal and resumption of iron ore.

Kamarajar (Ennore) recorded 15 per cent increase due to better thermal coal and POL. V.O. Chidambaranar recorded 12 per cent increase due to thermal coal, other industrial cargo and containers, whereas Kolkata Dock System achieve 11 per cent increase in freight during H1 due to enhanced volume of other industrial cargo and containers. Among the cargoes, raw

fertilizer volume increased 26 per cent, other industrial cargo 14 per cent and thermal coal 8 per cent, even as iron ore showed 23 per cent drop during April-September, affecting adversely the business volume at Haldia Dock, Paradip and Visakhapatnam.

Railways The total earning of Indian Railways on originating basis amounted to `73,403 crore during H1, registering an increase of 12 per cent, against11 per cent in H1 a year ago.

The goods earning increased by 10 per cent to `48,772 crore; the pace was more or less the same in H1 of 2013-14. Passenger earning also increased by the last year's pace of 16 per cent to `21,079 crore. The revenue earning from other coaching amounted to `1,980 crore (`1,850 crore).

Bank credit Total bank credit was up annually by 11.1 per cent by 17 October, much slower 16.3 per cent in the comparable period a year ago. Deposits were up by 12.6 per cent (14.2 per cent). The growth rate in SLR investment was 8.7 per cent (14.8 per cent).

Credit to deposit ratio scaled to 77 per cent, from 75 per cent a year ago.

Total gross non-food credit of scheduled commercial banks increased 8.6 per cent by 19 September, which is less than a half of 18.2 per cent in the similar period a year ago, according to data compiled by RBI from select scheduled commercial banks, which account for about 95 per cent of the total non-food credit deployed by all scheduled commercial banks. The growth rate in bank credit to industries fell from 17.6 per cent to six per cent, services from 22.1 per cent to 5.3 per cent and personal loans from 17.9 per cent to 13 per cent. Bank credit to agriculture, however, speeded from 13.2 per cent to 18.8 per cent. Bank credit to infrastructure sectors increased 9.8 per cent (20.6 per cent).

Broad money (M3) growth on y-o-y basis slowed to 12 per cent by 17 October 2014 from 13.7 per cent in the corresponding period a year ago.

Interest rates Weighted call money rates in call money market ranged 5.868.55 per cent during October, against 6.15-8.87per cent in September, and 6.86-9.55 per cent in October last year.

The cut-off rates on 91 days T-bills and 364 days T-bills worked out to around 8.44 per cent and 8.41 per cent respectively in their auctions on 29 October. The implicit discount rates on commercial papers floated in the first week of September ranged 8.34-11.62 first half of October, against 8.44-12.60 per cent in the second fortnight of September. The 10-year GoI securities were traded at 8.37 per cent average YTM in the secondary market during the week ended 24 October.

Base rates of major banks ranged 10-10.05 per cent by 24 October 2014, against 9.80-10.25 per cent a year ago. Deposit PROJECTS TODAY NOVEMBER 2014 7

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ECONOMY REVIEW rates of more than one year maturity were at 8-9.05 per cent (same range a year ago).

RBI's reference rate was `61.24 per US$ and `77.97 per Euro on 24 October. Rupee appreciated 0.6 per cent on a y-o-y basis against USD and 8.4 per cent against Euro.

Inter-Bank Forward Premium of US Dollar (per cent per annum) was 8.03per cent for one month and 7.87 per cent for six months as of 24 October.

Central government finance

Weighted Call Money Rates (%): 2013-14 Nov-14

5.46-8.72

Dec-14

6.30-8.82

Jan-14

6.11-8.69

Feb-14

6.70-8.98

Mar-14

6.73-9.71

Apr-14

6.38-8.80

A record amount of `527 billion net profit May-14 transfer, against `330 billion last year by Jun-14 RBI helped the Central government finance substantially during August.

Jul-14 Revenue receipt rose 24 per cent during the month and 7 per cent cumulatively to Aug-14 `2,705 billion. Even as reflecting no Sep-14 marked pick-up in the economy, tax receipt ran at last year's level, non-tax Oct-14 revenue increased 49 per cent during August and 24 per cent over April-August to `850 billion. Non-debt capital receipt continued to run at lower levels, which resulted in 6 per cent cumulative increase in total receipt to `2,748 billion.

In gross tax collection, excise and customs duties ran lower, whereas personal income tax (`785 billion) and service tax (`528 billion) increased decently by around 15 per cent each. At `736 billon, corporate tax showed a marginal y-o-y increase.

Government disbursement increased 19 per cent during August, reversing declines of preceding two months. Over April-August, total expenditure showed two per cent increase to `6727 billion. Plan expenditure went up 37 per cent during the month but at `1776 billion, it showed three per cent decline cumulatively. Non-plan expenditure increased 14 per cent, though due to decline during June-July, cumulative growth was assessed lower at three per cent. Total revenue expenditure increased 17 per cent during August, but nominally to `5952 billion cumulatively. Total capital expenditure shot up 38 per cent, but because of declines in the preceding three months, cumulatively at `775 billion the capex ran 1.4 per cent lower.

Gross fiscal deficit, the net borrowing to meet the shortfall between expenditure and receipt escalated 14 per cent during August, though helped by declines in preceding two months

8 PROJECTS TODAY NOVEMBER 2014

6.53-9.13 6.89-8.75 6.25-8.79 5.25-8.59 6.15-8.57 5.86-8.55

cumulatively the deficit ran lower during the first five months of the ongoing fiscal.

Foreign Trade India's export increased 2.7 per cent in September and 6.5 per cent during H1.

Engineering goods export increased 20 per cent, even as petroleum product export declined 13 per cent during the month, Import shot up 26 per cent during the month, the highest rate over around three years. Gold import shot up 450 per cent, after 175 per cent increase in August.

Petroleum crude and product import increased 10 per cent and machinery import 9 per cent. Cumulatively, import was 1.6 per cent more during H1. Trade deficit was placed at $70 billion ($76 billion).

Project cost index

Indicating that there is perhaps still no decisive marked upturn in project execution, ERIL Index of Cost of Project Inputs slipped in September in terms of provisional data, and stagnated during H1.Among the major investment goods, the prices of base metals ruled lower, though those of cement, construction machinery, electrical cables and non-electrical machinery relatively ruled firm during H1.Computed by Economic Research India Pvt. Ltd., ERIL Index measures project cost escalation in terms of WPI of material inputs relevant in project construction.

Inflation The wholesale price index (WPI)-based annual inflation worked out to 2.4 per cent during September. The WPI (with 2004-05 as the base year) of primary articles rose 2.2 per cent, fuel & power rose 1.3 per cent and manufactured products 2.8 per cent.

Consumer Price Index for industrial worker ran 6.3 per cent higher in September.

The inflation based on CPI (base year 2010=100) worked out to 6.7 per cent for rural areas, 6.3 per cent for urban areas and 6.5 per cent for combined (all India) in September 2014 on pointto-point basis.

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FOREIGN DIRECT INVESTMENT

Construction FDI norms eased T

he Indian construction industry is badly in need of infusion of the latest technologies, so that projects can be executed in time and in a cost-effective manner. To ease the problems of the industry, the Union government, on 30 October 2014, eased foreign investment rules in the construction sector, making it more investor friendly. The policy, which has already received inter-ministerial comments, is being readied for internal approvals. The ministry proposes reduction of the minimum built-up area requirement for FDI from 50,000 sq mtr to 20,000 sq mtr, and halving the minimum capitalisation norm from $10 million to $5 million respectively.

Amneal Pharmaceuticals Company's `205 crore proposal to acquire the entire share capital of Epsilon, through a share purchase agreement, has also been approved. Hyderabad-based Epsilon is engaged in trading of generic pharma products and is in the process of setting up a formulation manufacturing facility.

In the month of September 2014, the government approved 20 FDI proposals worth `988.3 crore, rejected five and deferred eight.

The government rejected a proposal of Sistema Shayam Tele Services, a joint venture between Russian Telecom company Sistema, and India's Shyam Group, of increasing FDI upto 100 per cent in the company, and its downstream wholly owned subsidiary, Shyam Internet Services.

Two defence related proposals were cleared. Bharati Shipyard proposes to undertake additional defence activities along with its existing activities. Solar Industries India, has sought approval for undertaking manufacturing of additional defence products.

Some of the other proposals approved include a `325 crore proposal of Equitas Holdings, Tamil Nadu, and a `305.63 crore proposal of Tara India Fund IV Trust, Mumbai. The US-based

Another pharmaceutical company, Fresenius Kabi Oncology's proposal for issuance of equity shares worth `119 crore, to increase foreign shareholding from 96.22 per cent to 96.483 per cent of its parent company, has also been approved.

Four other proposals were rejected which include three in the pharmaceutical sector from BioMerieux India, Kusum Healthcare, and HBM Private Equity India.

A joint venture proposed by Indus Teqsite, Tamil Nadu, to be formed with 26 per cent FDI to undertake defence sector activities was also rejected.

PROJECTS TODAY NOVEMBER 2014 9

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POLICY DEVELOPMENTS

Cabinet clears re-auction of coal blocks D uring October 2014, the Centre decided to promulgate an ordinance to allow e-auction of coal blocks whose allocation was cancelled by the Supreme Court recently.

The ordinance allows private sector power, cement and steel producers to bid for coal blocks via e-auctions. The entire revenue generated from such e-auctions will go to the respective state governments where the mines are located.

Companies being probed by CBI for coal block allocation irregularities can also bid for blocks. Winning bidders will have to pay the compensation amount for land, to existing holders of mining lease.

The government also decided to transfer all existing environmental clearances of cancelled coal blocks to the new owners once the auction is completed. Further, the government has formed a committee to assess compensation to be paid for taking over coal blocks that were running or ready-to-produce.

The panel will submit its recommendation by November 2014.

CCEA approved two major policy reforms in November. The Committee approved a proposal to increase the price of natural 10 PROJECTS TODAY NOVEMBER 2014

gas from the present $4.2/mmBtu on a net calorific value basis to $5.61 /mmBtu w.e.f 1 November, 2014. CCEA also approved changes in production sharing contracts (PSCs) that have been already awarded. The changes will facilitate faster monetization of 30 blocks held by ONGC, Cairn India, GSPC, Oil India and others.

In order to revive investment in the road sector, the Union government has come up with a new bidding process. The national highway projects are now being offered in both, government and privately funded modes. NHAI has invited rebids for projects under BOT and EPC mode. Among the biggest projects that have been rebid, is the Eastern Peripheral Expressway.

The civil aviation ministry has put on hold regional connectivity of domestic airlines especially to remote and small cities. In August, the ministry had put up the plan for feedback from airlines, which are already required to deploy a certain proportion of their fleet for connecting remote locations.

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INDIAN INVESTMENT ABROAD

Cabinet nod for Iran Port project I

n September 2014, Indian companies formed 460 JVs or wholly owned subsidiaries overseas, with total equity investment intentions of $3,017.09 million. Tata Steel's Singapore-based fully owned subsidiary, Abja Investment Company, raised $1,875 million in international markets through the dual tranche regulation issuance. The issue is guaranteed by Tata Steel. The company intends to utilise part of the funds on its overseas investment plans.

JNPT and Kandla Port Trust are forming a joint venture for development of Chabahar port in Iran. The Union Cabinet approved the proposal recently. The JV company intends to lease two fully constructed berths in the first phase of the port project for a period of ten years.

Essar Steel's US arm, Essar Steel Minnesota (ESML), has achieved financial closure for its $1.8 billion iron ore pellet project with an annual production capacity of seven million tonne. In the next 30 to 60 days, construction activities at the ESML site will focus on completion of foundational and concrete work before the winter freeze-up. ESML anticipates commencing production of taconite pellets in the second half of 2015.

On 30 September 2014, a shareholders' agreement was signed between SJVN and Druk Green Power Corporation for implementation of a 600 MW of Kholongchu Hydro Electric

Power Project in Bhutan. The project, to be implemented on BOOT basis, is a run-of-the-river scheme located on Kholongchu river. The project cost of `3,868.87 crore will be shared equally by the two joint venture partners. Further, in terms of the agreement, the joint venture company shall provide 12 per cent of the saleable energy to the Royal Government of Bhutan, free of cost, as Royalty Energy, during the first 12 years of commercial operations, and 18 per cent thereafter for the remaining concession period. SJVN and Druk Green Power Corporation shall have equal shareholding in the joint venture of the company. In terms of the agreement, the project shall be financed under a debt equity ratio of 70:30.

The coal mining project of GVK Hancock in Australia is expected to move forward following the clearance it received from Australia's environmental authority. The company's Alpha coal project in the Galilee Basin, in Central Queensland, was awaiting environment clearance for the last six years.

In another development, Adani Enterprises has hired consulting firm, Parsons Brinckershoff, to manage contract reviews for its $6.2 billion coal mine, rail and port project in Australia. The consultant will provide quality control and audit services for EPC contracts for Phase-I of the Carmichael mine, North Galilee Basin Rail (NGBR), and expansion at the port of Abbot Point.

PROJECTS TODAY NOVEMBER 2014 11

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PROJECT TENDER REVIEW

NHAI seeks developers for six laning of Handia-Varanasi section T he month of October 2014, saw 2,026 project tenders worth `47,737 crore being issued. Among these tenders, 1,424 tenders worth `17,634 crore, were by the State Government; 564 tenders worth `30,041 crore from Central Government; and the balance 38 were issued by private companies.

As usual, the roadways sector was at the forefront among the sectors in issuing tenders. In October 2014, the sector saw 679 project tenders worth `34,580 crore being floated. Though, in terms of number, the Public Works Department, Tamil Nadu, was the most active tenderer, issuing 289 tenders. In terms of tender value, NHAI's 48 tenders together accounted for more than half of the total tender value offered in October 2014.

Some of the major tenders issued by NHAI were:

Six laning of Handia-Varanasi section of NH-2 from km 713.146 to km 785.544 in Uttar Pradesh, on DBFOT basis, under NHDP Phase-V. The contract value was `2,361.66 crore Six laning of Baleshwar-Chandikhole section (km 62.000 to km 199.141) of NH-5 in Odisha, on DBFOT basis, under NHDP Phase-V. The contract value was `2,176.71 crore Six laning of Chakeri-Allahabad section of NH-2 (from km 483.687 to km 628.753) in Uttar Pradesh, on DBFOT basis, under NHDP Phase-V. The contract value was `1,661.60 crore Six laning of Agra-Etawah Bypass section of NH-2 (from km 199.660 to km 323.525) in Uttar Pradesh, on DBFOT basis, under NHDP Phase-V. The contract value was `1,621.09 crore.

Four laning of Biora-Dewas section of NH-3 from km 426.100 to km 566.450 in Madhya Pradesh on DBFOT basis, under NHDP Phase-V. The contract value was `1,609.48 crore

The Mopa airport development project saw some movement during the month with the Directorate of Civil Aviation, Goa, inviting bids from international developers for setting up a greenfield international airport at Mopa, in North Goa, on DBFOT basis In the community services sector, 291 tenders worth `1,964 crore were notified. The most notable tender in this sector was issued by the Directorate of Arts & Culture, Government of Meghalaya. On 22 October 2014, it invited bids for construction of Shillong international Centre for Performing Arts & Culture (SICPAC) at Shillong, in East Khasi Hills district of Meghalaya.

The contract value was `151.33 crore Though the power generation sector saw low tendering activities, in the distribution sector 163 project tenders worth `1,552 crore were floated. The largest power distribution tender was issued by Manipur State Power Company (MSPCL). On 7 October 2014, MSPCL invited bids for construction of 400/132 kV substation at Thoubal (new) in Manipur, on turnkey basis.

The contract value was `112.27 crore.

In the water supply sector, 153 project tenders worth `2,278 crore were issued. Among the tenders, the largest was the bid offer re-invited by Madhya Pradesh Jal Nigam Maryadit on 9

Top Ten States in Project Tendering

Top Ten Sectors in Project Tendering

Tenders

`Crore

Share (%)

Tenders

`Crore

Share (%)

Tamil Nadu

337

1,902

16.63

Roadways

679

34,580

33.51

Jharkhand

263

2,987

12.98

Community Services

291

1,964

14.36

Odisha

229

2,848

11.30

Power Distribution

163

1,552

8.05

Uttar Pradesh

144

11,513

7.11

Water Supply

153

2,278

7.55

Karnataka

108

1,236

5.33

Telecom Services

107

137

5.28

Bihar

100

953

4.94

Railways

106

1,509

5.23

Gujarat

81

972

4.00

Coal/Lignite Based Power

83

101

4.10

Maharashtra

78

448

3.85

Irrigation

66

733

3.26

Andhra Pradesh

72

282

3.55

Real Estate

65

1,729

3.21

Madhya Pradesh

70

6,969

3.46

Tourism & Recreation

39

199

1.92

Top Ten States

1,482

30,109

73.15

Top Ten Sectors

1,752

44,781

86.48

All India

2,026

47,737

100

All Sectors

2,026

47,737

100

States

12 PROJECTS TODAY NOVEMBER 2014

Sectors

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October 2014, for implementing the Narmada-Kshipra multi village rural water supply scheme in Indore, Dewas and Ujjain districts of Madhya Pradesh, on DBFOT basis. The contract value was `660 crore. Earlier, on 5 March 2014, the Jal Nigam had issued the tender for the same project.

In the month of October 2014, the railways sector saw 106 project tenders worth `1,509 crore being issued. The largest tender in this sector was issued by Northeast Frontier Railway.

On 6 October 2014, NFR invited bids for construction of single line BG Tunnel No. 12 (approx length 9,551.00 km) from ch.1,05,840.00 to 1,15,391.00 Adit-1 (approx length 1,440.00 mtr) at ch 1,12,623.00 and Adit-2 (approx length 420.00 mtr) at ch 1,15,391.00 in between Tupul and Imphal, in connection with construction of the new railway line project JiribamImphal in Manipur. The cost of the work was estimated at `655.99 crore.

Project Tenders By Ownership Ownership Government Central Government

Tata Power Delhi Distribution for design, engineering, supply, erection, testing and commissioning of new 66/11 kV GIS grid substation for TPDDL at SGTN, Delhi, on turnkey basis Kerala Co-op Milk Marketing Federation for civil work for setting up of one lakh ltr per day capacity Malayora dairy plant, at Sreekandapuram, in Kannur district of Kerala Sterlite Grid for execution of 400 kV D/C ACSR Moose (twin bundle) LILO on Uri-Wagoora transmission line in length of 1.5 ckm in Jammu & Kashmir.

Major EoIs invited:

The Government of India, Ministry of Textiles, for appointment of a Cluster Management & Technical Agency (CMTA) for development of a silk mega cluster under Comprehensive Powerloom Cluster Development Scheme (CPCDS) at Mysore, in Karnataka Power Grid Corpn of India for strengthening and augmenting the inter-state transmission and distribution schemes for six north eastern states (Assam, Nagaland, Tripura, Manipur, Meghalaya and Mizoram) under world bank funding & comprehensive scheme for strengthening of transmission and distribution system in Sikkim and Arunachal Pradesh, under domestic funding Paradip Port Trust for development of western dock on captive basis at Paradip Port in Jagatsingpur district of Odisha Uttarakhand Renewable Energy Devp Agency for establishment of watermill development centre in Uttarakhand

Major Consultancy tenders:

Infrastructure Corporation of Andhra Pradesh for project advisory and management consultant (PAMC) of repute for building a greenfield capital city for the new state of Andhra Pradesh Rajasthan Rajya Vidyut Utpadan Nigam for providing engineering consultancy for new supercritical thermal power project on fast track mode at Banswara (2x660/2x800

1,988

47,676

98.12

30,041

27.84

17,634

70.29

38

61

1.88

Private (Indian)

30

61

1.48

Private (Foreign)

8

0

0.39

2,026

47,737

100

Grand Total

Share (%)

564

Private Sector

Major private project tenders:

`Crore

1,424

State Government

Tenders

MW), unit No. 1&2 greenfield project in Rajasthan KfW Development Bank for consulting services, project coordination and support to the project executing agency and testing of electro-mechanical equipment and quality assurance during installation, in respect of electromechanical package of Shongtong Karchham Hydro Electric Project (HEP) in Kinnaur district of Himachal Pradesh Kamarajar Port for providing consultancy services for setting up of FTWZ at Kamarajar Port, in Virudhunagar district of Tamil Nadu V O Chidambaranar Port Trust for engaging consultant for preparation of detailed feasibility report creation of special economic zone (SEZ) at V O Chidambaranar Port Trust in Tuticorin district of Tamil Nadu Metro Link Express for Gandhinagar Ahmedabad (MEGA) Co for detailed design consultancy services for elevated metro-rail stations 13 nos. including viaduct portion within the station and transition spans on either side of the stations (Vastral Gam, Nirant Cross Road, Vastral, Rabari Colony, Amraiwadi, Apparel Park Stadium, Commerce Six road, Gujarat University, Gurukul Road, Doordarshan Kendra, Thaltej and Thaltej Gam stations) on east-west corridor of Ahmedabad Metro Rail Project in Gujarat National Buildings Construction Corpn for providing consultancy service for construction of sports complex at Kolasib, in Aizawl district of Mizoram Bihar Knowledge Society for selection of consultant for preparation of detailed project report (DPR) for the proposed greenfield electronic manufacturing clusters at Rajgir, in Nalanda district of Bihar

Other Developments The last date for submission of bids for development of sewage treatment plant of 60 MLD capacity under National Ganga River Basin Project, at Pahari, in Patna district of Bihar, was extended up to 14 November 2014.

Water Resources Department, Odisha, cancelled its tender issued on 12 October 2014, for Dam Rehabilitation and Improvement at Brahmapur on 19 October, 2014.

Lack of participation forced tender issuing authorities to extend the last date of submission of 573 project tenders and cancellation of around six tenders during October 2014.

PROJECTS TODAY NOVEMBER 2014 13

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FRESH INVESTMENT

Private sector gaining confidence ndicating the growing confidence of the private sector in the project investment arena, the average share of private fresh investment in the total fresh investment stood at around 55 per cent. In October 2014, 609 new projects worth `70,580 crore were announced. Of these, 460 projects worth `55,503 crore were greenfield projects; 124 were plant modernisation projects; and 25 were capacity expansion projects of existing units. Further, of the 609 projects, the promoters of 278 projects have not firmed up the costs of their projects. Most of these projects were in the Real Estate sector.

I

a `500 crore bearings unit with a capacity of 44.4 lakh numbers per year at Sanganer, in Jaipur district of Rajasthan.

In the Chemicals sector, the paint major, Asian Paints (India) plans to set up a new unit with a capacity of five lakh klpd at Nanjangud, in Mysuru district of Karnataka, with an investment of `2,400 crore. The project, to spread over 175 acre

Fresh Investment by Sector - Oct 2014 Projects

`Crore

Share (%)

Manufacturing

90

23,584.68

33.42

Mining

13

6,567.41

9.30

Electricity

25

9,105.60

12.90

477

31,055.23

44.00

4

267.93

0.38

609

70,580.85

100.00

Sectors

Of the 24 mega projects (projex of `500 crore or more) announced in October 2014, six were in the Manufacturing sector. Of the six, three projects and the largest new project of the month, was in the Automobile sector. Alcor Inc announced its plans to set up a `15,000 crore helicopter manufacturing and assembly unit in Odisha. Besides this, China Electric Vehicle Consortium plans to develop an electric vehicle hub with an investment of `613 crore, at Sanand, in Ahmedabad district of Gujarat, and National Engineering Industries intends to set up 14 PROJECTS TODAY NOVEMBER 2014

Services & Utilities Irrigation All Sectors

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of land, will be executed in two phases. A `1,000 crore vaccines manufacturing unit in Pune district of Maharashtra, by Serum Institute of India; a `534 crore chlor alkali capacity expansion at the Bharuch unit of Shriram; and Alkali & Chemicals were the other major projects taken up in this sector. The expansion plan also includes capacity hike of its captive power unit from 55 MW to 110 MW. The month of October saw five coal mine development projects being announced. Of the five projects, the largest one with a total investment of `2,369 crore was proposed by Rajasthan Rajya Vidyut Utpadan Nigam. The project intends to expand Parsa East and Kanta Basan open cast mining and pit head coal washery capacity from 10 million tpa to 15 million tpa at Udaypur, in Surguja district of Chhattisgarh.

Fresh Investment by Top Ten States - Oct 2014 States

Projects

`Crore

Share (%)

Odisha

33

15,132.03

21.44

110

9,363.47

13.27

Madhya Pradesh

15

7,952.87

11.27

Telangana

53

5,571.29

7.89

Gujarat

66

4,241.89

6.01

Uttar Pradesh

26

4,156.81

5.89

Karnataka

40

3,275.32

4.64

Kerala

10

2,771.64

3.93

Jharkhand

32

2,699.30

3.82

4

2,608.50

3.70

609

70,580.85

100.00

Maharashtra

Central Coalfields expansion of Topa open cast coal mining (which includes Pindra open cast coal mining), interlinked coking coal washery at Ramgarh, in Hazaribagh district of Jharkhand, with an investment of `1,194 crore, was the other mega project announced in this sector.

Chhattisgarh

Another Coal India subsidiary, Eastern Coalfields, has firmed up plans to expand the mining capacities of its two coal mines -- Ghusick underground coal mine and Rangamati-B underground coal mine in Bardhaman district of West Bengal.

Ownership

Mahuagarhi Coal Co plans to develop a `656 crore Mahuagarhi open cast coal mining project with a capacity of four million tpa at Kathikund taluka, in Dumka district of Jharkhand.

Services & Utilities (Infrastructure) topped the investment chart with 477 projects worth `31,055 crore and accounted for 44 per cent of the total fresh investment announced in October 2014. Cochin Shipyard plans to modernize its shipyard in Ernakulam, Kerala, by setting up a large dry dock to accommodate large ships like LNG carriers and aircraft carriers and build an LNG carrier at a total investment of `2,700 crore.

NHAI awarded a couple of highway projects in October 2014. A `2,361 crore Handia-Varanasi section of NH-2 from 713.146 km to 785.544 km in Uttar Pradesh; a `986 crore BakhtiyarpurMokama section of NH-31 from 153.30 km to 197.90 km in Bihar; a `856 crore Varanasi-Gorakhpur section (NH-29) from 12.00 km to 88.00 km in Uttar Pradesh were announced by NHAI. At the state level, Chennai Municipal Corporation took up a 2.76 km long flyover project at a cost of `1,100 crore. The flyover will connect Ega Theatre and Valluvar Kottam on EgaValluvar road in Chennai.

In the Construction sector, Pride Purple Group announced a residential complex 'Pride World City Township' at Charholi, in Pune district of Maharashtra, with an investment of `6,500 crore. The project, to spread over 400 acre of land, comprises 20,000 flats including master club, bus terminus, mall and multiplex, play school, higher secondary school, multispeciality hospital, art promenade, cultural centre and restaurants.

All India

Fresh Investment by Ownership - Oct 2014 Projects

`Crore

Share (%)

335

32,065.66

45.43

67

11,115.90

15.75

268

20,949.76

29.68

274

38,515.19

54.57

Private (Indian)

248

19,497.29

27.62

Private (Foreign)

26

19,017.90

26.94

609

70,580.85

100.00

Government Central Govt State Govt Private Sector

Grand Total

Indian Film Combine announced a `600 crore shopping mallcum-multiplex 'Maker Maxity' at Bandra (East). The project comprises a building of G+4 floors with shops and multiplex with a capacity to seat 500 people.

Telenor India, the parent company of Uninor, one of the telecom service providers in India, announced `600 crore network expansion plans. The company intends to set up 5,000 new base stations across six circles.

Twenty five new projects and 43 new power distribution lines helped the Electricity sector in attracting fresh projex of `9,296 crore. Telangana State Power Generation Corporation plans to set up a 1,080 MW (4 x 270 MW) coal-based power unit with an investment of `4,752 crore at Manuguru, in Khammam district of Telangana.

Among the states, Odisha topped the investment chart with 33 projects worth `15,132 crore and accounted for 20 per cent of the total fresh investment emanated in October 2014; and Maharashtra attracted the highest number of new projects - 110 projects entailing a total investment of `9,363 crore.

PROJECTS TODAY NOVEMBER 2014 15

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INTERVIEW

Xrbia plans to build 100 feature ready cities by 2030 Mr. Rahul Nahar, Managing Director, Xrbia Developers Ltd

Mr. Rahul Nahar is the primary shareholder, Founder and Managing Director of XRBIA Developers Ltd. Educated in Pune, Mr. Nahar started off his business career by joining a real estate company in Pune. He began as a developer of gated communities. Later, he went on to form XRBIA Developers with Mr. Vishal Nahar in the year 1995.

us about XRBIA's ongoing projects in various Q Tell cities of India

views on affordable housing vs the premium Q Your segment

XRBIA Developers is a unique housing venture established in 1995 and has projects spread across Mumbai, Nagpur, Delhi and Pune. All the XRBIA Projects are designed and master planned by world renowned Architect, Hafeez Contractor, who has created a revolutionary housing design for every project.

Recently, XRBIA Developers announced the pre-launch of its THREE residential projects in Pune and Mumbai.

Today, the real estate market has completely changed.

The situation has shaped up due to recession. The affordable housing segment has been badly hit.

A new trend has developed that is increasing the demand for luxury homes. This segment emerged as an attractive proposition for developers in 2006-07. Dozens of projects were launched and sold.

There is a qualitative shift in the buying patterns, as well as the buyers segment, for luxury housing.

Earlier, investors comprised a large segment of the buyers and value appreciation was probably the biggest concern.

However, today's buyer is looking at the developer's profile and his track record. More significantly, buyers of luxury homes today are neither investors nor first timers.

The survivors are now willing to spend on the luxuries of life but are picky about the developer they choose to buy from. Those developers whose projects continue to clock progress are today's winners. The only assurance the

16 PROJECTS TODAY NOVEMBER 2014

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buyer of today understands is delivery on his own terms.

During the wild run of real estate in 2006-2008, all developers were building in the premium segment only.

But now, most developers put their products where the lending is most active. The onus is on the policymakers to keep watching and moving to rein in market forces to meet the demands of the majority, as every market segment gives out signals. The policy makers' antennae has to be tuned into these changes to catch the right signals. views on the proposed 100 Smart Cities Q Your The population in India is growing rapidly and a number of major cities are already facing infrastructural and environmental problems. The future scenario looks scary; however, it is estimated that by 2030, about 600 million people will be residing in cities in India.

To accommodate this rapid urbanisation, the Central Government has allocated approx `7,060 crore to build 100 new smart cities and to develop satellite towns around existing cities.

The vision of developing Smart Cities has begun with the ministry of Urban Development identifying new and existing locations that will soon be transformed to 'smart' locations.

These smart cities will certainly garner the attention of the IT sector that will eventually provide real-time inputs on availability of water, electricity, healthcare and education. This will effectively manage the traffic,

4:15 PM

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weather prediction, pollution control, management and emergency response technology enabled for all smart cities.

disaster through

role would XRBIA like to play in smart cities Q What development ?

We, at XRBIA Developers, share a similar vision to build "100 feature ready cities by 2030".

We have taken it upon ourselves to build not only houses, but cities that are environmentally friendly, technologically advanced, committed to education, dedicated to health, and which foster community spirit.

By 2030, India will have a housing shortage of 100 million homes. By building 100 new cities, Xrbia hopes to meet one per cent of this need.

REITs be effective in regulating the Indian Q Will real estate sector ?

The Indian real estate sector continues to lure international as well as domestic investors. The government of India has recently announced in the Union Budget 2014-15, that it will boost the investment sentiment in the country. The announcements, such as the allocation of funds for boosting rural housing and infrastructure, introduction of real estate investment trusts (REITs) and various other steps, have promoted affordable housing segment in the country and have created a favourable market place for further growth.

REITs in particular, will prove to be an effective tool for enhancing investments in the commercial / residential real estate.

PROJECTS TODAY NOVEMBER 2014 17

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ORDERS & CONTRACTS uring the month of October 2014, a total of 106 orders and contracts were awarded, with an order value totaling `22,247.15 crore, as per the data compiled by ProjectsToday. These domestic and overseas contracts were bagged by 76 companies across various sectors.

Further, of the 106 orders, 96 were domestic and the balance 10 were won by Indian companies overseas. The largest order of the month was a `7,800 crore contract bagged by BHEL from Tamil Nadu Generation & Distribution Corporation, for design, engineering, manufacture, supply, construction, erection, testing and commissioning for the EPC package, comprising 2x660 MW

D

BHEL secures the largest project order of October 2014

Sector-wise Contracts Awarded in October 2014 Sectors

Orders

`Crore Share (%)

Business Complexes

1

0.69

0.00

Coal/Lignite Based Power

3

8426.13

37.88

Commercial Complexes

1

0

0.00

Computer Software

6

46.87

0.21

Crude Oil/POL Pipeline

3

10.43

0.05

Gas Pipeline

1

0

0.00

Heavy/Light Commercial Vehicles

4

104.62

0.47

Hydel Based Power

1

422

1.90

Irrigation

1

0.64

0.00

LNG Storage & Distribution

1

0

0.00

LPG Storage & Distribution

1

1.09

0.00

Other Community Services

6

345.52

1.55

Other Electronics

1

0

0.00

Other Non Metallic Minerals

1

103.09

0.46

Other Shipping Infrastructure

1

179.84

0.81

Other Storage & Distribution

1

0

0.00

Petroleum Oil & Gases

3

1130

5.08

Petroleum Products [Refinery]

7

2.13

0.01

Power Distribution

18

2127.11

9.56

Railway Wagon & Equipment

1

2

0.01

Railways

5

1780.22

8.00

Real Estate

3

461

2.07

Roadways

24

3668.29

16.49

Solar based Power

2

10

0.04

Telecom Services

1

60

0.27

Tourism & Recreation

2

2989

13.44

Tyres & Tubes

1

102

0.46

Water & Sewerage Pipeline & Distri.

1

1.48

0.01

Wind Based Power

4

0

0.00

Wires & Cables [Optic fibre]

1

273

1.23

106

22247.15

100

Grand Total

coal-fired supercritical thermal power project at Ennore SEZ in Tiruvallur district of Tamil Nadu.

The second largest contract worth `2,989 crore was finalised by Sardar Sarovar Narmada Nigam on behalf of Sardar Vallabhbhai Patel Rashtriya Ekta Trust. Larsen & Toubro bagged this award for design and construction of the statue of unity, the 182 mtr (597 ft) bronze statue of Sardar Vallabhbhai Patel, which will be built on the Sadhu Bet Island, approximately 3.5 km south of Sarovar Dam, at Kevadia, in the Narmada district of Gujarat, on EPC basis. The scope of work involves design, engineering and construction of the statue along with an exhibition centre as its base, a memorial garden, a designer bridge connecting Sadhu Island with the mainland along the Narmada River, an internal roadway of five km length, and improvements to the existing roads/bridges/culverts connecting the area of Sadhu Island. It will also host an administrative complex/ management hub-cum-star hotel (Shresta Bharat Bhavan) and a conference centre.

The roadways sector saw finalisation of 24 contracts worth `3,668.29 crore. Among these, the largest contract was finalised

by U P Expressways Industrial Devp Authority, for a `1,630 crore job work to Larsen & Toubro, for the construction of sixlane access controlled expressways from Unnao (Village Neval) to Lucknow, in Uttar Pradesh, on EPC basis. The scope of work includes design, engineering and construction of the 63 km long expressway, including construction of service roads. It will also include major structures like 18 VUPs (Vehicular under passes), four major bridges, 10 minor bridges, 26 pedestrian underpasses, one trumpet interchange and associates work.

IL&FS Engineering & Construction Company has bagged the fourth largest contract of the month from National Highways Authority of India. The `1,232.00 crore contract was for the four laning of Patna-Gaya-Dobhi section of NH-83 from 0.000 km to 127.217 km in Bihar.

In October 2014, 18 contracts worth `2,127.11 crore were awarded in the power distribution sector. Power Grid Corporation of India (PGCIL) owned 10 of the 18 contracts finalised in the month. However, the largest contract was awarded by the NMDC to BHEL for design, engineering, supply, erection and commissioning of the complete power distribution system for three million tpa integrated steel unit at Nagarnar, in Bastar district of Chhattisgarh, on turnkey basis.

The system will supply power through 33 kV GIS-based substations, to the shops of the steel plant.

18 PROJECTS TODAY NOVEMBER 2014

Ten overseas contracts bagged In the month of October 2014, Indian companies bagged 10 overseas contracts worth `1,081.31 crore in coal/lignite-based power, power distribution, real estate, heavy/light commercial vehicles and computer software sectors from countries like South Africa, Zambia, USA, Singapore, Sri Lanka, UK, United Arab Emirates, USA, South Africa and Saudi Arabia.

(Note: The awarder and contract value of some contracts has not been disclosed).

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WORLD BANK REPORT

PROJECTS TODAY NOVEMBER 2014 19

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WORLD BANK REPORT reat ideas for new business ventures happen every day and everywhere. Some go far, while others never take off. Great ideas are at the heart of development; they allow economies to grow, and they improve people's lives. So it is important to understand why some great ideas never come to fruition even as others thrive.

G

What do entrepreneurs need to pursue a great idea? First of all, they need the ability to give legal form to the idea- that is, to start a business-simply, quickly and inexpensively and with the certainty of limited liability. They also need the certainty of a well-designed insolvency system, in case the idea fails to work out. In addition, they will need to hire people to help realize the idea, will probably need to obtain financing (both equity and credit) and, in today's increasingly interdependent global economy, may in many cases need a simple way to import and export. And they will need a straightforward way to pay their taxes.

Sound business regulations are fundamental to all this. The right business regulations enable good ideas to take root, leading to the creation of jobs and to better lives. But where business regulations make it difficult to start and operate a business, good ideas may never see the light of day and important opportunities may be missed. Budding entrepreneurs, daunted by burdensome regulations, may opt out of doing business altogether or, if they have the resources, take their ideas elsewhere.

aspects of regulatory quality. Many of the improvements in methodology were inspired and informed by the report of the Independent Panel on Doing Business as well as by input from policy makers and data users.

Doing Business continues to focus on regulations that affect domestic small and medium-size enterprises, operating in the largest business city of an economy, across 10 areas: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures labor market regulation, which is not included in any of the aggregate measures.

In another change starting in this year's report, Doing Business has extended its coverage to include the second largest business city in economies with a population of more than 100 million.

These economies are Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States.

Where are regulations more business-friendly?

Singapore continues to be the economy with the most businessfriendly regulations. And while there was some reordering of economies within the top 20 in the ease of doing business ranking, the list remains very similar to last year's: 17

Ease of doing business ranking Doing Business looks at how business regulations determine whether good ideas can get started and thrive or will falter and wither away. Many other dimensions of the business environment also matter but are outside the scope of Doing Business. For example, Doing Business does not capture such aspects as security, market size, macroeconomic stability and the prevalence of bribery and corruption. Nevertheless, improving in the areas measured by Doing Business is an important step toward a better business environment for all.

What does doing business measure-and how is it changing?

This year's Doing Business report launches a 2-year process of introducing important improvements in 8 of the 10 sets of Doing Business indicators. These improvements provide a new conceptual framework in which the emphasis on the efficiency of regulation is complemented by an increased emphasis on its quality. In the area of dealing with construction permits, for example, Doing Business will measure the quality of building regulations and the qualifications of the people reviewing the building plans in addition to the efficiency of the process for completing all the formalities to build a warehouse.

With a few exceptions, the original Doing Business indicators focused mainly on measuring efficiency, such as by recording the procedures, time and cost to start a business or to transfer property. These are very important aspects to measure. But as the project's importance grew, it became clear that there was a need to expand what was being measured to include more 20 PROJECTS TODAY NOVEMBER 2014

Rank

Economy

DTF score

1

Singapore

88.27

2

New Zealand

86.91

3

Hong Kong SAR, China

84.97

4

Denmark

84.20

5

Korea, Rep.

83.40

6

Norway

82.40

7

United States

81.98

8

United Kingdom

80.96

9

Finland

80.83

10

Australia

80.66

11

Sweden

80.60

12

Iceland

80.27

13

Ireland

80.07

14

Germany

79.73

15

Georgia

79.46

16

Canada

79.09

17

Estonia

78.84

18

Malaysia

78.83

19

Taiwan, China

78.73

20

Switzerland

77.78

India

53.97

142

Source: World Bank Report

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economies stayed on the list, while 3 entered this year-Estonia, Germany and Switzerland. Economies in the top 20 continued to improve their business regulatory environment in the past year. For example, Switzerland made starting a business easier by introducing online procedures and strengthened minority investor protections by increasing the level of transparency required from listed companies. And Sweden made registering property easier through a new online system that became fully operational in the past year. The 20 economies at the top of the ease of doing business ranking perform well not only on the Doing Business indicators but also in other international data sets capturing dimensions of competitiveness. The economies performing best in the Doing Business rankings therefore are not those with no regulation but those whose governments have managed to create rules that facilitate interactions in the marketplace without needlessly hindering the development of the private sector.

Who improved the most in 2013/14?

Since 2004 the Doing Business report has captured more than 2,400 regulatory reforms making it easier to do business. In the year from June 1, 2013, to June 1, 2014, 123 economies implemented at least one reform in the areas measured by Doing Business-230 in total. More than 63% of these reforms reduced the complexity and cost of regulatory processes, while the others strengthened legal institutions. Twenty-one economies, including 6 in Sub-Saharan Africa and 6 in the

reform, with some 85% doing so. Sub-Saharan Africa had the second largest share of economies implementing at least one reform and the second largest average improvement in distance to frontier scores. Latin America and the Caribbean and South Asia remain the 2 regions with the smallest share of economies implementing regulatory reforms as captured by Doing Business.

Among the 21 economies with the most reforms making it easier to do business in 2013/14, 10 stand out as having improved the most in performance on the Doing Business indicators: Tajikistan, Benin, Togo, Cote d'Ivoire, Senegal, Trinidad and Tobago, the Democratic Republic of Congo, Azerbaijan, Ireland and the United Arab Emirates. Together, these 10 top improvers implemented 40 regulatory reforms making it easier to do business. Among these 10, only Cote d'Ivoire featured among the 10 top improvers in last year's report. And only 4 place among the top 100 in the overall ease of doing business ranking; Ireland has the highest ranking, at 13. Being recognized as top improvers does not mean that these economies have exemplary business regulations; instead, it shows that thanks to serious efforts in regulatory reform in the past year, they made the biggest advances toward the frontier in regulatory practice. Many of the 10 top improvers still face many challenges on their way to international best practices in business regulation, including high bureaucratic obstacles, political instability and weak financial institutions.

Share of economies with at least one reform making it easier to do business (%)

Among the 10 top improvers, Tajikistan made the biggest advance toward the regulatory frontier in the past year, thanks to improvements in several areas.

What do the new data show?

OECD high-income group, implemented 3 or more reforms reducing burdensome bureaucracy or improving legal and regulatory frameworks. Globally, more than 80% of the economies covered by Doing Business had an improvement in their distance to frontier score-it is now easier to do business in most parts of the world.

Sub-Saharan Africa, the region with the largest number of economies, accounted for the largest number of regulatory reforms in 2013/14, with 39 reducing the complexity and cost of regulatory processes and 36 strengthening legal institutions. As in previous years, however, Europe and Central Asia had the largest share of economies implementing at least one regulatory

Subnational Doing Business reports have covered more than 300 cities in 55 economies in the nearly 10 years that they have been published. For the first time this year, the global Doing Business report also extends its coverage beyond the largest business city in each economy. For the 11 economies with a population of more than 100 million, Doing Business now covers the second largest business city as well as the largest one. The data provide new insights into the variability of business regulation within economies.

The sets of indicators showing limited variability across cities in the same economy tend to be those measuring the strength of legal institutions- getting credit, protecting minority investors, enforcing contracts and resolving insolvency, which mainly draw from national laws with general applicability. Variability is more common for the sets of indicators measuring the complexity and cost of regulatory processes-starting a business, dealing with construction permits, getting electricity, registering property, paying taxes and trading across borders.

But this variability is more likely to be in time and cost than in PROJECTS TODAY NOVEMBER 2014 21

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WORLD BANK REPORT the number of procedures, suggesting that in most cases the law is the same across cities though its implementation may vary.

In all 11 economies the data for getting credit-both on the strength of legal rights and on the depth of credit informationare the same for the 2 cities covered. This is easy to explain.

Credit information systems tend to operate at the national level, not at the city or state level. Collateral laws also tend to be national, and even in the United States, where these laws are under state jurisdiction, there is enough legal harmonization so that the 2 cities in the sample have the same score on the strength of legal rights index. In the area of protecting minority investors all 11 economies again show no difference between the 2 cities in the aggregate score. In the United States, however, there are differences in some of the data embedded in the indicators for Los Angeles and New York City-because company law is under state jurisdiction and there are measurable differences between the California and New York company law.

In the area of resolving insolvency only 4 of the 11 economies have a difference between the 2 cities in the recovery rate and none have a difference in the strength of insolvency framework index. The pattern is different in the area of enforcing contracts. Only 4 of the 11 economies have a difference in the number of procedures to resolve a commercial dispute. In all 4 of these economies one of the pair of cities has a specialized commercial court (Rio de Janeiro, Monterrey, Lagos and New York City) while the other does not (Sao Paulo, Mexico City, Kano and Los Angeles). But the time and cost to resolve a commercial dispute differ between the 2 cities in 7 of the 11 economies and the differences in time can be significant. In Nigeria, for example, resolving a commercial dispute takes 720 days in Kano but 447 days in Lagos.

There is also more variation at the city level in the other indicators. For example, only 4 economies have the same tax system in both the 2 major business cities-Bangladesh, India, Indonesia and Nigeria. In all the other large economies the total tax rate differs between the 2 cities. In the area of starting a business the paid-in minimum capital requirement is the same in the 2 cities in all 11 economies, and the number of procedures differs in only 4 economies. But the time and cost to start a business differ between the 2 cities in 8 economies. Only in Bangladesh and Pakistan is the process the same in the 2 cities. Similarly, the procedures to transfer a property between 2 firms differ in only 4 economies but the cost to do so differs in 9 economies. Only in Japan and Russia is the process the same in the 2 cities.

In dealing with construction permits and getting electricity 10 economies show some degree of difference between the 2 cities, and in trading across borders all 11 economies do so. These are the areas of regulation measured by Doing Business where location matters the most. Building permits are commonly issued by municipalities. Similarly, electricity connections are often provided by local utilities. And the distance to the nearest port is an important factor in determining the time and cost to 22 PROJECTS TODAY NOVEMBER 2014

export and import, leading to differences even within the same economy. Labor market regulation can also vary across cities within an economy. In 6 of the 11 economies-Brazil, China, India, Indonesia, Japan and Russia-the 2 cities in the sample have different minimum wage levels.

Does city size matter for having business-friendly regulations?

At first glance the data suggest that it does not. In 6 of the 11 economies the largest business city performs better on the Doing Business indicators overall than the second largest one, while in the other 5 the second largest business city has the higher score. And in the economies where the second largest business city has a substantially smaller population (at most 30% of the largest business city's population), the second city has more business-friendly regulations overall. This is the case for Kano, Monterrey and Surabaya.

Among the 11 economies, the United States has the highest number of differences between the largest and second largest business cities: Los Angeles and New York City differ in 9 of the 10 topics (while the 2 cities have the same overall score on the strength of minority investor protections, they have differences in the underlying indicators). Japan has the fewest: Osaka and Tokyo differ in only 4 topics-starting a business, getting electricity, paying taxes and trading across borders. Overall, the differences between cities within the same economy are very small.

Relationship between efficiency and quality?

One of the big innovations in this year's report is the expansion of the data on the quality of regulation. Measuring aspects of the quality of regulation is not new for Doing Business; some indicator sets, such as getting credit and protecting minority investors, already included a focus on regulatory quality. But starting this year a systematic effort is being made to include measures of quality in most of the indicator sets. This year's report introduces a new measure of quality in the resolving insolvency indicator set and expands the measures of quality in the getting credit and protecting minority investors indicator sets. Next year's report will add measures of regulatory quality to the indicator sets for dealing with construction permits, getting electricity, registering property, paying taxes and enforcing contracts.

The results so far suggest that efficiency and quality go hand in hand. For resolving insolvency the data show that there is a positive correlation between the recovery rate for creditors and the strength of the legal framework for insolvency. The recovery rate measures the cents on the dollar recouped by secured creditors through insolvency proceedings and is a measure of efficiency because time and cost are 2 important components. The strength of insolvency framework index measures how well insolvency laws accord with internationally recognized good practices and is therefore a proxy for quality.

Very few economies have an insolvency system with both high efficiency (a recovery rate of more than 50 cents on the dollar) and low quality (a score on the strength of insolvency

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framework index of less than 8 of the possible 16 points). But many economies have an insolvency system with low efficiency and high quality. These are economies that have well-designed laws but face challenges in implementing them effectively.

These results suggest that well-designed laws are necessary but not sufficient to achieve efficiency in an insolvency system. On average, though, economies with better-designed laws tend to have higher recovery rates.

Preliminary data for a new indicator being developed to measure regulatory quality in registering property reinforce the idea that efficiency and quality go hand in hand: economies that offer a simple, fast and inexpensive process for transferring property are also likely to have a land administration system providing reliable land records.

The new indicator under development measures the reliability, transparency and geographic coverage of land administration systems as well as elements of land dispute resolution. The indicator focuses on such aspects as whether the land registry and mapping system (cadastre) have adequate infrastructure to guarantee high standards of quality for the information recorded, whether information is easily accessible to the public and whether the land registry and cadastre cover the entire territory of the economy. Preliminary data show that virtually all economies that score well on the overall quality of land administration (with a distance to frontier score above 50 for the indicator) also score well on efficiency in transferring property (with an average distance to frontier score above 50 for the procedures, time and cost).

But many economies have a property transfer process that is efficient yet lacks quality. Thus while these economies make the transfer of property simple, fast and inexpensive, the lack of quality in the land administration system is likely to undermine the value of the property title. Economies that make resolving a commercial dispute simpler, faster and less expensive also tend to have a judicial system that follows well-established good practices-such as having a specialized commercial court or division, having a small claims court, offering arbitration and voluntary mediation and making judgments in commercial cases available to the general public.

Unlike for resolving insolvency and registering property, however, for enforcing contracts the economies are more evenly spread across the 4 quadrants of quality and efficiency.

Singapore is among those that combine high efficiency and high quality. In that country resolving the standard commercial dispute in the Doing Business case study takes only 21 procedures and 150 days and costs 25.8% of the value of the claim. And not surprisingly, the judicial system follows several internationally recognized good practices, such as having a separate commercial court, providing arbitration, making judgments available to the public, using case management and allowing plaintiffs to file their initial complaint electronically. On the other hand, the judicial system in Mongolia, with no specialized commercial court or

small claims court, can resolve the standard commercial dispute through 32 procedures in 374 days and at a cost of 30.6% of the claim value.

What are the benefits of more business friendly regulations?

As earlier Doing Business reports have discussed, the benefits of business friendly regulations are well established in the economic literature.

To name just a few: Reforms simplifying business registration lead to more firm creation.

Increasing trade openness has greater effects on growth where labor markets are more flexible.

Cumbersome, poorly functioning business regulation undermines entrepreneurship and economic performance.

Introducing collateral registries and debt recovery tribunals leads to better-performing credit markets.

Reforms improving access to credit and the efficiency of property registration are correlated with product and process innovation by young firms.

In addition, with the time series of Doing Business data now available, it is possible to study how changes in regulations within an economy over time lead to changes in development outcomes in that economy.

Changes in business regulations over the years Among the more encouraging trends shown by Doing Business data over the past decade is the gradual improvement in economies' performance in the areas tracked by the indicators. Moreover, economies with the weakest regulatory institutions and the most complex and costly regulatory processes tend to focus on the areas where their regulatory performance is worse, slowly but steadily beginning to adopt some of the better practices seen among the best performers.

What is in this year’s report?

This year's report presents several case studies focusing on legal and regulatory features covered by new or expanded indicators being introduced this year or next year. One case study, on protecting minority investors, discusses the importance of corporate governance rules that are now being measured.

Another discusses the importance of a strong legal framework for insolvency, also among the features being measured by new indicators-while a third examines the new components of the getting credit indicators. A fourth case study analyzes good practices in land administration systems that will be measured in Doing Business 2016.

These case studies provide new insights from the newly collected data. The case study on resolving insolvency shows, for example, that OECD high-income economies have the highest average score on the strength of insolvency framework index. And economies that have reformed their insolvency laws in the past several years score substantially higher on this index than economies with outdated insolvency provisions. This is PROJECTS TODAY NOVEMBER 2014 23

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WORLD BANK REPORT important, because economies with better insolvency laws as measured by Doing Business tend to have more credit available to the private sector.

Other case studies in this year's report focus on good practices in the areas of business regulation covered. A case study on starting a business analyzes good practices in operating a company registry and the benefits of those practices. This case study discusses how company registries empower businesses to operate in the formal economy, allowing them to reap the benefits that come with formalization, and how online platforms for company incorporation make the process faster and cheaper. A case study on zoning regulations looks at good practices that can increase efficiency in construction permitting.

Another case study analyzes the time series of data on paying taxes with an emphasis on patterns before, during and after the global financial crisis. This case study shows that over the 9-year period ending in 2012, the global average total tax rate as measured by Doing Business fell by 9.1 percentage points, with the fastest rate of decline occurring in the years immediately following the crisis. The reduction was accompanied by a tangible improvement in the quality of tax administration in many economies thanks to their adoption

of the latest technologies to facilitate online filing and payment.

The report also presents a case study on enforcing contracts that analyzes new data on freedom of contract. These new data will not be included in the enforcing contracts indicators; they were collected solely for research, with the aim of better understanding the link between contract enforcement and freedom of contract.

Finally, this year's report presents a summary of some of the research presented at the Doing Business research conference that took place in February 2014. This research used Doing Business data or studied areas relevant to the Doing Business indicators. Doing Business will continue to monitor progress in business regulation in economies around the world with the aim of keeping governments informed about good practices and enabling researchers to further our knowledge of how laws and regulations affect development.

Extracted from: World Bank. 2014. Doing Business 2015: Going Beyond Efficiency. Washington, DC: World Bank. DOI: 10.1596/978-1-4648-0351-2. License: Creative Commons Attribution CC BY 3.0 IGO

What Doing Business continues to cover and what it is adding

What Doing Business continues to cover

What this year's report adds

What next year's report will add

Procedure, time, cost and paid-in minimum capital to start a business Procedure, time and cost to complete all formalities to build a warehouse Procedures, time and cost to get connected to the electrical grid Procedures, time and cost to transfer a property Movable collateral laws and credit information systems Minority shareholders' rights in related-party transactions Payments, time and total tax rate for a firm to comply with all tax regulations Documents, time and cost to export and import by seaport Procedures, time and cost to resolve a commercial dispute Time, cost, outcome and recovery rate for a commercial insolvency

More features on the strength of legal rights and depth of credit information More features on minority shareholders' rights A measure of the strength of the legal framework for insolvency An additional city in 11 economies with a population of more than 100 million Ease of doing business ranking based on the distance to frontier score

Measures of the quality of building regulations Measures of the reliability of the electricity supply Measures of the quality of the land administration system Measures of the postfiling process in paying taxes Measures of the quality of the judicial administration system

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ENERGY UPDATE

MINERAL FUELS Project Completion The `864 crore coal mining project is being implemented by Singareni Collieries Company. The mine is located at Godavarikhani in Karimnagar district of Telangana. Coal started coming up the conveyor belt from the longwall underground mine on 11 October. The project is now being test-run. Initially, the mine will produce around 1.5 million tonne of coal per annum. Over time, Adriyala's production will be increased to 2.8 million tpa, adequate to generate around 500 MW of electricity at NTPC's Ramagundam power plant in Telangana.

Once operational, the Adriyala mine will be the largest underground mine in the country.

PETROLEUM PRODUCTS [REFINERY] Project Developments

Gulf Oil Lubricants India (GOL), will enhance capacity at its manufacturing unit at Silvassa

by December this year. The Silvassa unit presently has a capacity of about 75,000 million tonne and it will be enhanced to about 90,000 to 95,000 million tonne. The expansion will be implemented with an investment of about `40 crore. Gulf Oil, a part of the Hinduja Group, is also setting up a greenfield plant near Chennai. The lubricant plant will have a capacity of 40,000 to 50,000 million tonne in Phase-I and is expected to be ready in 2016. The project is estimated to cost `125 crore. GOL has recently forged a partnership with Mahindra & Mahindra. Under the agreement, GOL will manufacture and supply lubricants under the brand name 'Mahindra M-Star Super' for its dealer workshop network.

Madhya Pradesh is set to get a Petroleum, Chemicals, and Petrochemicals Investment Region (PCPIR) near the Bina refinery.

The Union government has decided to set up a PCPIR at Bina refinery, between Gwalior and Bhopal. The project cost will be Rs one lakh crore. This will be the fifth PCPIR in India and the first in the state. PCPIR is usually a delineated area of around 250 sq km for setting up manufacturing facilities for domestic and export-led production. In March 2007, the Cabinet Committee on Economic Affairs had approved the proposal to set up PCPIRs in four states Gujarat, Andhra Pradesh, Odisha and Tamil Nadu. Till now, the government has announced PCPIRs in Dahej, Gujarat; Paradip in Odisha; Vishakhapatnam-Kakinada in Andhra Pradesh; and Cuddalore-Nagapattinam in Tamil Nadu. These projects will come up with a combined investment of `7.6 lakh crore.

Numaligarh Refinery (NRL) has inked a partnership with Finlandbased Chempolis, to build a world class bio-refinery. The biorefinery will be set up in the state of Assam and its implementation is projected to take around two and a half years. According to the agreement, the bio-refinery will utilise bamboo as the main biomass which is easily available in North East India. This region accounts for 66 per cent of the country's bamboo resources. This project will enable cultivation of bamboo on a commercially sustainable basis and improve rural economy of the region.

ELECTRICITY

Project Developments Acme Group, on Thursday, announced that it had received the final approval for a $100 million loan from the Asian Development Bank (ADB). The loan will be distributed in multiple tranches. The first tranche of $50 million will be utilised in developing a 100 MW solar project in Rajasthan. Acme had won the power project in the second round of bidding under the

PETROCHEMICALS [HYDROCARBON] Project Development Reliance Industries (RIL) will invest $16 billion in petrochemical capacity expansion and lower feed and fuel costs.

RIL will be investing $4.6 billion in an integrated gasification combined cycle (IGCC) project that will convert captive petrocoke to synthetic gas (syngas). This syngas will generate power, steam and hydrogen and be used as fuel for the refinery allowing it to replace LNG and internal refinery off-gases which will be fed to a new $4.5 billion refinery offgas cracker (ROGC). The 1.5 million tonne ROGC will extract petrochemical compounds like ethane, ethylene, propylene, butanes and propanes. Another $5 billion will be spent on expanding polyester production capacity by some 60 per cent in aggregate across four locations.

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ENERGY UPDATE Jawaharlal Nehru National Solar Mission (JNNSM) in February 2014. The project is estimated to cost `808 crore and is expected to be commissioned by April 2015. Last month, Acme Group had sourced an investment from the International Finance Corp (IFC) for the Rajasthan project. The firm is also seeking loan syndication of upto $66 million (`388 crore) from IFC for the solar power project.

Four power companies - Adani Power, Jindal Power, Sterlite Energy and GMR Energy - have pulled out of the bidding process for ultra-mega power plants (UMPP). The companies have pulled out from the bidding process for the proposed Cheyyur UMPP in Tamil Nadu and Bhedabahal UMPP in Odisha. Adani, Jindal Power and Sterlite had purchased the Request for Proposal (RfP) documents for the Bhedabahal UMPP and GMR for the proposed Cheyyur plant after having qualified in the Request for Qualification (RfQ) round of the bidding process. State-owned NTPC remains the only player in the fray for the power projects. The four companies have conveyed their decision to the power ministry.

These plants are to be developed on the Build-Operate-Transfer (BOT) model.

Assam Gas Company (AGCL) and Assam Power Generation Corporation (APGCL) -- two state sector PSUs -- plan to set up a 50 MW power plant. It is estimated to cost around `300 crore and the gas-based power project will be situated in Titabor, in Jorhat district of Assam. The project is expected to be commissioned in two years. The proposed plant will utilise associated gas that generally goes waste in the state's oil fields. Oil and Natural Gas Corporation will sell associated gas from its oil fields in Jorhat and Golaghat districts for the project. The necessary pipeline for collection of the associated gas to feed the power project will be constructed by AGCL. A solar power plant at the site in Amguri, in Sivasagar district, will be set up by APGCL soon. Over the past 20 years, not a single gas-based power project has been set up due to inability by ONGC and Oil India to supply gas for the plant.

The Telangana government and BHEL signed a memorandum of understanding (MoU) on 4 October, 2014. As per the agreement, BHEL will construct new thermal power plants of 6,000 MW capacity in the state, over the next three years. They will be implemented on an EPC basis. At least, 1,080 MW will be operational within two years, as against the standard 36 months required for erection of a power plant. About 4,000 MW of the agreed capacity will be set up in Manuguru of Khammam district, and the rest is tentatively planned for Ramagundam, in Karimnagar district. Land for the projects will be provided by the Telangana government.

The 685 MW Unit-I of GMR Chhattisgarh Energy's (GCEL) supercritical coal-based thermal power plant successfully achieved synchronization with the grid on 2 October, 2014. The 1,370 MW GCEL is the GMR Group's first supercritical coal-based thermal power plant. The plant is located at Raikheda, in Raipur district of Chhattisgarh. The unit used fuel oil to achieve this first synchronization. The project has been implemented on multiple packages concept by Doosan of Korea. Work on commissioning GCEL's Unit-II of 685 MW is in progress. The GMR group had signed the MoU with the government of Chhattisgarh for the 26 PROJECTS TODAY NOVEMBER 2014

Raikheda power plant in 2008 and received environment clearance and Consent to Establish, in 2011.

The state-run Gujarat Mineral Development Corporation (GMDC) will set up a 50 MW wind power project in Gujarat. The new addition will take the total capacity of the wind power installation to 200 MW in the state. It will cost about `300 crore and the net generation is expected to be 104.10 million units for the project.

The plant is projected to be commissioned by mid-2015. GMDC will sign a long term power purchase agreement with Gujarat Urja Vikas Nigam (GUVNL) to supply energy after completion of the project. At present, the company has five MW solar power capacity installed at Panandhro, in Kutch. GMDC's net profit for the quarter ended June 2014 increased by close to 10 per cent, to `130.54 crore, from `118.67 crore in the corresponding quarter of the previous financial year. For the quarter ended June 2014, the total income from operations was `423.87 crore as compared to `370.09 in June 2013.

Hinduja National Power Corporation is ready to commission its first unit of 520 MW of the 1,040 MW thermal power project at Palavalasa, near Visakhapatnam, in Andhra Pradesh, by December this year. By January-February 2015, the second unit of 520 MW will go on-stream. This project progress has been hampered by several regulatory hurdles. In 2009-10, Hinduja Power revived the project and secured the necessary, fresh permission for its implementation. Hinduja National Power Corporation has a long term coal supply agreement with Mahanandi Coalfields. Earlier, the Hinduja Group planned to build 10,000 MW of generation capacity in the country, with an estimated cost of `60,000 crore.

Medha Energy is planning to set up a solar-based power unit at Bhetala, in Jalor district of Rajasthan. The 20 MW solar power project will be set up with an investment of `174.40 crore over 80 acre of land. Around 75 per cent of the project cost will be funded through bank loan and the remaining 25 per cent from internal accruals. Land acquisition is underway. The consultant, civil contractor and machinery supplier are yet to be finalised. Work on the project is expected to commence by November 2014.

The government is keen to set up an offshore wind power project in the country, along the Gujarat coast. It has announced the signing of a Memorandum of Understanding (MoU) for undertaking the wind power project. The MoU was signed by the Ministry of New and Renewable Energy (MNRE), National Institute of Wind Energy (NIWE), and a consortium of partners consisting of NTPC, Power Grid Corporation, Indian Renewable Energy Development Agency (IREDA), Power Finance Corporation, Power Trading Corporation and Gujarat Power Corporation. This proposed plant along the Gujarat coast will have a capacity of around 100 MW. The JV company will implement the necessary steps for execution of the wind power project.

NTPC is setting up a 750 MW solar power project in Madhya Pradesh, for which an MoU was signed recently. The project will be set up at Rewa district with an investment of `5,000 crore. The investment size is based on the estimate that for generating one MW of solar power, an investment of `seven crore is required. The

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solar project will be completed in three tranches of 250 MW each.

NTPC has identified land and is in discussions with the state government. The project will start generation within one year of land acquisition. NTPC has set a target of generating 3,500 MW through solar power in the next few years. Of this 1,000 MW will be in Andhra Pradesh, Telangana and Rajasthan. Land is being scouted for these projects.

NTPC announced the commissioning of the Kudgi Super Thermal Power Project (KSTPP) by January, 2016.The first stage of this project in Bijapur district of Karnataka will have a capacity of 2,400 MW with three units. From May 2016, the first unit with 800 MW will begin its operations and the rest of the units are expected to be commissioned with an interval of six months. The second stage of the project will have a total capacity of 1,600 MW with 800 MW each. An investment of `15,166 crore has been estimated for the first stage of the project. Till September 2014, around `5,900 crore has been incurred on the project.

State-run Neyveli Lignite Corporation's power plant at Tuticorin will be completed soon. The 1,000 MW thermal power unit will help to achieve over 4,200 MW generation capacity. It is estimated to cost `4,910 crore and will achieve 86 per cent progress by August next year. At present, the plant has an installed capacity of around 3,000 MW. The project at Tuticorin is implemented through the subsidiary company, NMDC Tamil Nadu Power, formed in a joint venture with TANGEDCO. Once the NLC's expansion projects are commissioned in Neyveli and other parts, its fuel necessities are expected to shoot up to 10 million tpa. The company already has plans of setting up two projects in Tamil Nadu and Uttar Pradesh. It will require an investment of `24,770 crore and will take the total capacity to 11,195 MW. Also, it will have a plant in Rajasthan.

State-run NHPC will set up its first solar project in Uttar Pradesh, with an estimated cost of `400 crore. NHPC signed a promoters' agreement with Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) for setting up a joint venture company (JVC) for implementation of solar power projects in Uttar Pradesh on 17 October, 2014. In August 2013, an initial pact for this 50 MW solar project was signed between NHPC and UPNEDA. This is the first solar power project by NHPC and is scheduled to be completed by mid-2016.

Puri Group is planning to raise about `140 crore to fund a 14 MW hydropower project in Himachal Pradesh. The group has already availed of techno-economic clearances for the 14 MW run-of-theriver hydro project at Uhl Ghat, in Himachal Pradesh. Puri Group is a known player in the edible oil market, with its 'P-Mark' brand. Its flagship company, Puri Oil Mills, has been awarded seven small hydropower projects with a total capacity of 31 MW in Himachal Pradesh and Haryana where it has a presence in the edible oil market. It has already commissioned three projects with a combined capacity of five MW at an investment of `60 crore. Next, it plans to start working on commissioning a 7.5 MW project at Killibehl-Kullum, in Himachal Pradesh. The group is also planning to separate its hydel power business under a new company to focus more on the sector.

The Power Finance Corporation (PFC) has agreed to finance expansion of the GENCO Krishnapatnam power project in Nellore district of Andhra Pradesh.This project is now functional with an 800 MW unit, and a second unit of 800 MW is ready for commissioning. Earlier this year, Unit-I of 800 MW was commissioned and is in the process of stabilisation towards generation with full capacity. The PFC will provide around `3,542 crore for expansion of this plant. Further, it is keen to fund around `7,000 crore for a new transmission scheme of AP Transcode in the next two to three years. As per the State Energy Department, the PFC plans to invest about `15,000 crore. This includes `7,000 crore in transmission; `3,000 crore in power generation; and `5,000 crore in distribution system in the state.

Suzlon Group intends to build 2,000 MW of new wind power projects in Madhya Pradesh, over the next five years. Suzlon has also proposed to establish supporting manufacturing facilities for these wind power plants. The proposal was expressed today at the Global Investors Summit 2014 held in Indore. The company has installed more than 50 per cent of total wind capacity in Madhya Pradesh. The state has close to 14,000 MW of installed power capacity. Suzlon Group's global spread extends across Asia, Australia, Europe, Africa and North and South America with 24,726 MW of wind energy capacity, installed with operations in over 31 countries.

Solargise plans to set up 3,000 MW of both, self-generated and EPC projects in India. They will be completed in the next two to three years through its Indian subsidiary, Solargise GRAPP Energies. The cost of the solar projects is estimated at `1,200 crore. Solargise has already secured a few projects across Rajasthan and Bihar under the state government's mission plan. In addition, it is in the process of securing a few more projects in Andhra Pradesh, Karnataka and Tamil Nadu. The company is also developing a 200 MW project in Gujarat.

Project Completion Rays Power Experts commissioned its 20 MW solar project at Bikaner, in Rajasthan, on Thursday. This turnkey order of the 20 MW solar EPC project of seven companies at Bikaner was successfully commissioned under the REC mechanism in solar park. In setting up this project, the company has invested `125 crore. Rays Power Experts wants to expand its business portfolio by entering into new verticals such as solar roof-top models, independent solar power parks and more. Under its portfolio, it has 650 MW capacity plants.

Unit-II of Shree Singaji Thermal Power Project Stage-I was synchronised on 11 October, 2014. Shree Singaji Thermal Power Project is a 1,200 MW (2x600 MW) coal fired power plant, located near Dongaliya village of Khandwa district, in Madhya Pradesh. The 600 MW Unit-I was synchronised on 1 February, 2014. Stage-I of the project is being set up with an investment of `7,820 crore.

Under Stage-II, two units of 660 MW each will be set up as part of the project with an investment of `6,750 crore. After completion of both the stages, the total power generation capacity of the thermal power plant will be 2,520 MW.

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MANUFACTURING UPDATE

FOOD PRODUCTS

Project Completed

Project Development

BASF India has inaugurated its greenfield chemical facility at Dahej, in Bharuch district of Gujarat. The chemical production site is located at Dahej Petroleum, Chemicals and Petrochemicals Investment Region. Along with the inauguration, some of the plants will also commence commercial production from today. The Dahej facility is an integrated hub for polyurethane manufacturing and houses production facilities for care chemicals and polymer dispersions for coatings and paper. The facility was set up with an investment of `1,000 crore. The site will be jointly inaugurated by Anandiben Patel, Chief Minister of Gujarat; Saurabhbhai Patel, Minister for Finance, Energy and Petrochemicals, Government of Gujarat and Michael Heinz, Member of the Board of Executive Directors, BASF SE.

Shree Shambhu Mahadeo Sugar & Allied Industries is setting up a sugar unit in Bid district of Maharashtra. The unit is coming up at Devrai village in Bid district and will have a capacity of 3,500 tccpd. The sugar project will be spread over 70 acre of land and will also include a 22 MW co-generation power unit.

MITCON Consultancy Services has been appointed as the DPR consultant. The project is estimated to cost `150 crore. 75 per cent of the project cost will be funded through bank loan and the remaining 25 per cent from internal accruals.

BASIC CHEMICALS Project Developments

DRUGS & PHARMA Project Completion

Gujarat Alkalies & Chemicals (GACL) is planning a `3,500 crore expansion, which includes setting up a new caustic soda plant.

GACL's expansion plans involve expanding the existing capacities of caustic soda, chloromethane and phosphoric acid besides caustic potash, at its Dahej plant. The caustic soda capacity is being expanded by 1,200 tonne per day; that of chloromethane by 600 tonne per day; phosphoric acid by 300 tonne per day; and the caustic potash to 120 tonne per day.

The Vadodara-based company plans to set up a new caustic soda plant at Bhavnagar with a capacity of 600 tonne per day. The company will also come up with a 120 MW coal-based power project at Dahej. It will set up a new plant in Eastern Indian states with a capacity of 300 tonne per day or alternatively, may acquire a similar capacity manufacturing unit of caustic soda in the region. Presently, GACL's total capacity is 0.43 million tpa, while the total installed capacity of caustic soda production in India is 3.5 million tpa.

State-run Rashtriya Chemicals and Fertilisers (RCF) will set up a new urea capacity at its Thal plant, near Mumbai. The project has been estimated to cost `4,500 crore. It will have a capacity of about 1.27 million tonne of urea per annum. This plant is going to produce ammonia too. The new project will be covered under the new urea investment policy, as notified by the government. Its work is projected to begin in the next financial year and scheduled to be completed in two years. RCF will raise about `3,500 crore from banks and the rest of the finance for this project will be generated internally. The company had reported a net profit of `83.95 crore for the first quarter ended 30 June. It has a capacity of 2.5 million tpa of urea and seven lakh tonne of complex fertilisers.

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Abbott nutrition plant was inaugurated by Gujarat Chief Minister, Smt Anandiben Patel, at Jhagadia, Gujarat on 16 October, 2014.

Abbott, the global manufacturer of nutrition products, has invested about `450 crore in this plant. The unit is located on 45 acre of land at Jhagadia, which comes in between Bharuch and Vadodara district. This is Abbott's first nutraceutical plant in India. The nutrition plant marks the realisation of the memorandum of understanding (MoU) signed between the USbased pharma company and the Gujarat government, under the Vibrant Gujarat initiative. Abbott has also committed to building toilets and sanitation blocks worth `three crore in Gujarat over the coming six months.

TEXTILES

Project Developments Best Knitting Mills is expanding the knitted fabrics capacity at its Thane plant in Maharashtra. The company will expand its capacity from 20 crore mtr per year to 201 crore mtr per year. The textile project is being implemented in four phases. Karl Mayer Textilmaschinenfabrik GmbH has been appointed as the machinery supplier for the project. The completion of the project scheduled for November 2015.

Phase-I of Shri Gajanan Sahakari Soot Girni's cotton yarn unit is scheduled to be completed by December 2014. Phase-I was earlier scheduled to be completed by August 2014. However, machinery erection work on Phase-I is still underway. Work on Phase-II is yet to commence. The cotton yarn unit is coming up at Yeat

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(Pimpalner) in Bid district of Maharashtra. The project will be spread over 20 acre of land and implemented in two phases with a capacity of 12,500 spindles each. The unit is being set up with an investment of `57.54 crore. Of this, `15 crore will be funded by Bank of Maharashtra and the remaining from internal accruals.

Project Completion Trident has started commercial production at its plant in Budni, Madhya Pradesh. The terry towel plant comprises 300 looms and was set up with an investment of `1,191 crore. The inauguration of this plant will mark the completion of the first phase of the composite textile project undertaken in Budni. Chief Minister, Shivraj Singh Chouhan, and Industry Minister, Yashodhara Raje Scindia, inaugurated the plant and also laid the foundation stone of the proposed composite textile project comprising a spinning unit of 1,85,000 yarn spindles, bed linen unit of 500 looms, and a captive power plant of 60 MW. The captive power plant will have an investment of `393 crore. With this expansion, the installed capacity of Trident will increase to 688 looms capable of producing 90,000 tonne per annum of terry towels.

TYRES & TUBES Project Developments

Maxxis Group is planning to set up a tyre plant near Sanand, in Gujarat. The Taiwanbased tyre manufacturing group has discussed the roadmap for the project with the Gujarat government. This will be Maxxis' first plant in India.

Construction of the plant is expected to begin soon.

METALLURGY

Project Developments Anrak Aluminium is optimistic about securing government approval for its bauxite mining project in three to four months. The mine is located in the southeastern state of Andhra Pradesh and will have an annual capacity to produce 1.5 million tonne of bauxite.

Bauxite is used to make alumina which then goes into producing aluminium. Anrak's alumina refinery is likely to be in place by April 2015, while the second phase will include a smelter. Anrak is a joint

venture between Penna group of industries and Ras Al Khaimah Investment Authority Suraj Group has acquired land at Mehsana district in Gujarat for its service center and production facility. The company has acquired 4,00,000 sq mtr of land at Chandarda village, in Mehsana district.

The facility will include extrusion press for stainless steel long heater tube for power, oil and gas plant sectors. Suraj is also developing a precision stainless steel tube manufacturing facility at its existing plant located at Thol village, Mehsana, with bright annealing quality concept which is likely to be commissioned in November 2014.

Project Completion State-run steel maker SAIL, commissioned two facilities in its Bhilai plant on 18 October, 2014. This was part of the company's ongoing expansion and modernisation programme.

The two units -- one is a sinter machine and the other a coke oven battery -- have been set up with a cost of around `2,000 crore.

SAIL envisages raising its hot metal capacity to 7.5 million tpa as part of the `17,265 crore capex. The coke oven battery, coke dry cooling plant and the by-product plant have been installed at an investment of `1,213.11 crore and will boost the coke making capacity by 0.88 million tpa. The cost of the installation of the sinter machine is `730 crore and the machine will produce 3,708 million tonne sinter per annum. SAIL expects to fortify its position in the steel sector with two facilities in its Bhilai plant.

GLASS & GLASS PRODUCTS Project Completion

Saint-Gobain's world glass complex at Bhiwadi, Rajasthan, was inaugurated by the Chief Minister of Rajasthan, Vasundhara Raje, on 27 October, 2014. The plant has a capacity to manufacture close to 1,000 tonne of glass per day, making it the largest in India.

The fully automated and integrated glass facility was set up with an investment of `1,000 crore.The glass complex is spread over a campus of 136 acre and has a built-up area of 1.14 lakh sq mtr.

Being on the Delhi-Mumbai Industrial Corridor gives it significant logistics advantages. It will become Saint-Gobain's gateway to further penetrate the North India market

NON-METALLIC MINERAL PRODUCTS Project Development

Zuari Cement, through its subsidiary, Gulbarga Cement (GCL), is setting up a cement plant in Gulbarga, Karnataka. The plant will have a cement capacity of 3.23 million tonne, and two million tonne clinker capacity.

Zuari is also setting up a captive power plant of 50 MW. The foundation stone for the plant was laid on 30 September 2014, by Nabil Francis, Managing Director of Zuari Cement, along with Ramesh Suryanarayana, Director of Business Development. The project is located 28 km away from Gulbarga city, on the Gulbarga-Bangalore highway.

Gulbarga Cement is in possession of 1,821 acre of land and received approval for the project from the Karnataka Industrial Areas Development Board (KIADB) on 3 September, 2014.

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MANUFACTURING UPDATE MACHINERY & ELECTRONICS Project Developments Chhattisgarh will set up an electronic manufacturing cluster with ultramodern amenities in Naya Raipur. The setup will cost `105 crore and the central government has given its approval. This project received the green nod from the Union Ministry of Communications and Information technology at a meeting on 13 October, 2014. Earlier, Chhattisgarh State Industrial Development Corporation (CSIDCL) had sent a proposal to the Centre, for the development of the electronic manufacturing cluster over 70 acre of land in Naya Raipur. The centre will finance `50 crore for this project and the remaining will be borne by the state government. On completion of this electronic manufacturing cluster, it is expected to provide employment opportunities to about 1,000 people.

Daikin is planning to set up a new manufacturing unit in India. This will be the second unit in the country to double its production capacity. The expansion will cost `330 crore excluding the land cost for the new plant. However, the location has yet to be finalised.

Daikin manufacturers 10 lakh units of residential air conditioners annually. On 15 October 2014, the company launched its next generation VRV IV technology (Variable Refrigerant Volume) for commercial air conditioning in the Indian market. For the financial year 2014-15, the turnover expected is `2,500 crore. In FY 201314, it had a turnover of `2,200 crore. The company is keen to export orders and explore international markets. But the Indian market remains its first priority.

Rajasthan Electronics and Instruments (REIL), has proposed to set up a solar panel manufacturing unit in Andhra Pradesh.

Company officials are soon expected to meet AP chief minister, N Chandrababu Naidu, to discuss the method of setting up the plant.

This project will assist in generating additional employment in the state. As per the energy department, the state has plans to enter into an agreement for the procurement of additional power of 1,040 MW from June 2015 to May 2016. Around 16,000 acre of land is allocated for setting up solar parks of 2,500 MW in the state.

Recently, N Chandrababu Naidu launched an LED lighting programme in Vijayawada. The chief minister will inaugurate distribution of LED lamps at Vinukonda and Nagaram, in Guntur

district. According to this scheme, about 22 lakh LED bulbs are proposed to be distributed for 11 lakh domestic consumers in the district.

Project Completion Hercules Hoists has commenced commercial operations at a new manufacturing unit in Hinjewadi, Pune. The unit will undertake assembling, testing, maintenance & repairing among other products, electrical and non-electrical hoists, trolleys, cranes and other material handling equipment. Hercules Hoists presently has a material handling equipment facility at Khopoli, in Raigarh district of Maharashtra.

AUTOMOBILES Project Developments

Amara Raja Batteries' new plant in Chittoor, Andhra Pradesh, will significantly increase its overall capacity. This new plant is expected to go on-stream by December-January. The new facility is being set up with an investment of `450 crore to double its automotive batteries from six million units a year now. With the three new lines in the plant, it will augment the capacity by about 40 per cent. Amara Raja Batteries is expecting a growth of around 25 to 30 per cent this year. Apart from this new plant in Chittoor, it has an operational facility in Tirupathi. The company is keen to expand its export business. At present, it generates 10 to 12 per cent of the revenue from its exports. The total investment for the business expansion is `1,000 crore.

Ashok Leyland is planning to manufacture an electric version of Optare buses in India, by next year. The Hinduja Group flagship company will consider setting up the plant at Alwar, in Rajasthan, or at Tiruchirapalli, in Tamil Nadu. It has bus manufacturing facilities at both the locations. The company will sell the buses in India under the Ashok Leyland badge. Ashok Leyland has invested about 25 million pounds in Optare, UK. The company has been selling about 100 Optare buses a year in the UK market.

Atul Auto plans to set up a three-wheelers unit near Bavla, in Ahmedabad district of Gujarat. The unit will have a capacity of 60,000 nos. per year and will be set up with an investment of `150

ALUMINIUM Project Development Gujarat Mineral Development Corporation has acquired over 100 ha of land for Phase-I of an alumina plant and aluminium smelter plant in Kutch. For Phase-I of this project, 400 ha of land is required. It will be set up in a joint venture with Navratna Public Sector Unit (PSU) and National Aluminium Company (PSU), at Mandvi taluka, in Kutch district. The first phase of the project involves setting up an alumina plant whereby alumina will be extracted from the ore bauxite by means of a process at an alumina refinery. While, in the second phase, it involves setting up an aluminium smelter plant. The investment cost of Phase-I is estimated to be around `5,400 crore, higher than the initial estimate of `4,000 crore. The investment for the entire project, including the aluminium smelter point will be between `10,000 crore to `12,000 crore. The capacity of the alumina plant and aluminium smelter plant is for one million tonne alumina and 0.5 million tonne aluminium smelter, respectively.

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crore. The project will be spread over 70 acre of land and implemented in two phases.

A consortium of Chinese automobile companies is planning to set up an electric vehicle (EV) manufacturing hub in Sanand, Gujarat.

Seven Chinese companies have formed China Electric Vehicle Consortium to set up the 200 acre electric vehicle park. The evehicle hub will come up with an investment of $100 million. The Chinese consortium comprises Green Field Motor Co, VOCH Group, YueHua Control Group, Zhuji Yongcheng Auto Co, Wenzhou Jinpi Machinery Manufacturing Co, and JBON Control Industry.

These companies plan to make electric two-wheelers, threewheelers, as well as four-wheelers and vehicles to be used for cleaning roads, besides city sanitary cars, ambulance cars and police cars.

Fiat Chrysler Automobiles is planning to manufacture luxury sports utility vehicles (SUVs) in India, as part of its `1,500-2,500 crore investment in the country.Fiat plans to manufacture SUVs under the Jeep brand and and export them to key markets including the UK, Australia and South Africa in the next two years.

Development work for the first premium SUV to be made in India has begun and production of the C-segment vehicle will begin by the end of 2016.

Honda Motorcycle & Scooter India (HMSI) has signed a State Support Agreement with the Gujarat government. This is a pact for a two-wheeler manufacturing plant at Viththlapur village, in the Mandal region of Ahmedabad district. It is near the upcoming Maruti Suzuki facility. The total investment estimated for this plant is `1,000 crore and will give employment to 2,000 people. It is expected to have a manufacturing capacity of 1.2 million units per annum, along with two assembly lines for scooters. Further, on 16 October 2014, foundation stone was laid for its two-wheeler plant in Gujarat. The new scooter's plant is coming up on 250 acre of land in Vithalapur, 80 km from Ahmedabad. It will have an installed annual capacity of 12 lakh units. By the end of 2015, this plant will start commercial production and is projected to achieve full production capacity of 12 lakh vehicles within a year.

Hero MotoCorp is looking forward to investing `5,000 crore in five manufacturing facilities across India, Colombia and Bangladesh.

This will enable it to increase its annual production capacity to 12 million units by 2020. The company inaugurated its manufacturing facility in Neemrana, Rajasthan, This plant has been set up with an investment of `1,050 crore. It is designed to manufacture a wide range of motorcycles and scooters. Neemrana plant has an annual capacity of 7,50,000 units. By November, work in the Gujarat plant (`1,600 crore) will begin and the plant will have a capacity of 1.8 million units. The Andhra Pradesh plant's (`1,600 crore) annual capacity will be 1.8 to two million units.

facility. This unit has already started manufacturing 225 ladder frames in a month, through a wholly-owned unit, Cosma International. Magna International is setting up two new manufacturing units in Sanand, Gujarat. It will take its manufacturing locations tally in the country to 11, after the commissioning.

Wrightbus International's Chennai facility is set to commence operations by April next year. The North Ireland-based Wrightbus has partnered with Daimler India for manufacturing the bus body for its Bharat Benz range of buses. Wrightbus will be doing exclusive bus body manufacturing at the plant for Daimler. The bus body building facility in Chennai will be part of the new bus plant proposed by Daimler India Commercial Vehicle. The Chennai plant is partly for the domestic market but mainly for exports to South East Asia.

Yamaha's new plant at Vallam Vadagal in Kanchipuram, Chennai, will begin its operations by January 2015. This plant, on the outskirts of Chennai, is estimated to cost `1,500 crore and the company will invest money till 2018. Yamaha had signed an MoU with the state government in 2012, stating that the new plant would employ 1,800 people at the start of operations and around 6,500 in the next five years. The plant at Vallam Vadagal in Kanchipuram will manufacture scooters in the beginning. It will have an initial annual capacity of four lakh units. By 2018, it plans to increase the number to 18 lakh units. Yamaha envisions to sell around six lakh units in the domestic market and export around two lakh units this year. The new plant and the increased production capacity in other plants in Surajpur (Uttar Pradesh) and Faridabad (Haryana), will lead to achieving a combined motorcycle production capacity of 2.8 million units by 2018.

Project Completion Electro-Motive Diesel (EMD) opened a new facility at Noida on 16 October, 2014. The locomotive manufacturer will manufacture electronic control cabinets for the Indian Railways at the Noida facility and will also provide support services like overhaul of components. EMD is a fully owned subsidiary of Progress Rail Services and offers railroad solutions to railways across the world, including locomotives, track, re-power, signalling and safety technologies.

Canadian auto components, Magna International, have set up a ladder frame manufacturing facility in Pune. The unit was set up with an investment of around `250 crore. It is a brand new manufacturing facility and the company will supply the frames exclusively to Mahindra & Mahindra. On its part, Mahindra will invest about `130 crore for tooling of the ladder frames at the PROJECTS TODAY NOVEMBER 2014 31

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TRANSPORTATION UPDATE

ROADWAYS Project Developments The Cabinet Committee on Economic Affairs has given its approval for the Odisha highway project. The development of ChandikholeDubari-Talcher stretch, as a four-lane National Highway in Odisha, will be undertaken at an estimated cost of `1,476.56 crore, which includes the land acquisition cost, resettlement and rehabilitation and other pre-construction activities. The total length of the road is around 133 km. This highway will be constructed through engineering procurement contract, which is a government-funded route.

Work on the Ega-Valluvar flyover will start with the widening of Valluvar Kottam High Road from the Nungambakkam High Road junction upto Independence Day Park. This 2.76 km flyover will connect Ega Theatre to Valluvar Kottam in just two minutes and cut down travel time. The total estimated cost of this flyover project is `1,100 crore. It is projected to be completed in three phases, with each taking a period of six months. Work on the double flyover at Valluvar Kottam will begin after the road widening. It will require 38,000 sq mtr of land for construction of the flyover. From which, 27,000 sq mtr of land has to be acquired from private land owners at a cost of `750 crore to the corporation. The project will be completed by 2016.

The Pedder Road flyover in Mumbai was accorded Coastal Regulation Zone (CRZ) clearance by the Union Environment Ministry on 4 September, 2014. The 4.2 km flyover was planned in 2000, but work on the Pedder Road viaduct has been delayed due to objections from locals. As per Maharashtra State Road Development Corporation (MSRDC), which is executing the project, a decision on when to begin work will be taken after the State assembly election. MSRDC has received proposals from several private firms for construction of the flyover. However, it is yet to finalise a bidder. The Expert Appraisal Committee (EAC) for infrastructure development and CRZ projects had recommended environmental clearance for the flyover on 29 November, 2013.

Work on the Eastern Express Highway to Bandra Kurla Complex (BKC) connector is likely to begin next month.The Maharashtra Coastal Zone Management Authority (MCZMA) cleared the project in its last meeting, but the Mumbai Metropolitan Region Development Authority (MMRDA) is awaiting finalisation of the minutes. There is likely to be a meeting by the end of this month after which the work can begin. The elevated road will go over the Mahim Nature Park, LBS Marg, cross railway lines half a km north of Sion station and over the Chunabhatti railway crossing. The 32 PROJECTS TODAY NOVEMBER 2014

connector will enable commuters from the eastern suburbs to travel to BKC within five minutes. The road will also decongest the narrow Sion-Dharavi link road.

Mumbai Metropolitan Region Development Authority (MMRDA) has decided to build a rail-over-bridge (ROB) at the level crossing at Chunabhatti. The 1.6 km ROB project is estimated to cost `165 crore and will include two elevated connectors joining BandraKurla-Complex to the Eastern Express Highway. Project work will be completed in the next six months. This ROB is projected to improve the harbour line's punctuality during the peak hours.

MMRDA's decision to construct this bridge was taken as the Central Railway wants to shut down the level crossing.

The National Highway and Infrastructure Development Corporation (NHIDCL), will award the first highway project in Meghalaya this month. NHIDCL is formed by the Union Government to develop 10,000 km of roads with a special focus on North East and border areas in India. These include Assam, Meghalaya, Mizoram, Tripura, Nagaland, Arunachal Pradesh and Uttarakhand.In the Union Budget 2014-15, the government allotted `3,000 crore for improving state roads and highways in this region.

In Meghalaya, there are five projects under various stages of development and one of the projects is likely to be awarded by NHIDCL in October.

Food and Civil Supplies Minister, Sanjay Dasburma, laid the foundation stone for the road work at Puri-Brahmagiri-Satpada NH316. The Odisha government had decided to widen the PuriSatapada highway and take up infrastructure development of the Alarnath temple and its periphery near Bramhagiri, as it expects 20 lakh devotees for the fortnight long 'anasara' of Lords Jagannath and Balabhadra and Devi Subhadra during the Nabakalebara festival next year. The road will be widened by 10 ft with an investment of `17 crore, while over `five crore will be spent on infrastructure development for pilgrims at Brahmagiri. `7.5 crore will be spent for black-topping of the road.

The Uttar Pradesh government has acquired over 2,000 ha of land for the proposed Agra-Lucknow expressway. This land, together with around 121 ha of government and Gram Sabha land, makes up 70 per cent of the total land required for the project. The 301 km expressway project is estimated to cost `10,000 crore. It will traverse 10 districts viz, Agra, Firozabad, Mainpuri, Etawah, Auraiya, Kannauj, Kanpur City, Unnao, Hardoi and Lucknow. As per UP Expressways Industrial Development Authority (UPEIDA) sources, the state government has so far acquired over 2,061 ha of land in these districts. Additional land across 15 other villages is yet to be acquired and negotiations with farmers are underway.

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Meanwhile, UPEIDA has sought `1,350 crore from the finance department for part payment to farmers. Almost `5,000 crore will be needed for land acquisition payments and the project is expected to be completed in 30-36 months.

The bidding process for the Agra-Lucknow expressway has been completed.

costing `130 crore; `125 crore for electrification of the Jasal-JNPT Port line and the Panvel-Pen-Thal line; `52 crore for construction of overbridges at level crossing gates between CST and Roha; `15 crore for replacement of FOBs at a few railway stations; and `10 crore for installation of digital equipment between Thane and Kalyan.

Vadodara Municipal Corporation (VMC) administration has prepared a proposal for an integrated transport system in the city, with the cost of the first phase amounting to `360 crore. CEPT University has made relevant changes and submitted its final report to VMC. In May 2013, some changes were recommended in the report, after a draft feasibility report was placed before the Union Ministry for urban development. The proposal has been forwarded to the elected wing of the civic body. As per the proposal, Phase-I will be of 21.8 km. From this, 17.1 km will have a Bus Rapid Transport (BRT) system and the remaining 4.9 km will have a Lite BRT system. The Union government will bear 50 per cent of the total expense; VMC 30 per cent; and the state government 20 per cent.

The Delhi Metro Rail Corporation (DMRC) has been appointed as the interim consultant for metro projects in Andhra Pradesh. The Andhra Pradesh government has appointed DMRC for conducting the feasibility study and detailed project reports (DPRs) for the proposed metro rail projects in Visakhapatnam and the new capital of the state Vijayawada. DMRC will be paid Rs eight lakh per km for the MRTS corridors in Visakhapatnam and Vijayawada. Further, DMRC will conduct the feasibility study in the first stage for the Tirupati metro rail project, for which it will be paid `50 lakh as fee.

The decision comes days after E Sridharan was appointed as the principal advisor for the proposed Metro Rail projects in Visakhapatnam and Vijayawada.

Project Impediments

Delhi Metro Rail Corporation (DMRC) has submitted the DPR for Metro Phase-IV, to the Urban Development Ministry and the Delhi government. Phase-IV will connect places like Narela, Maujpur, Madangir, Bawana, Barwala, Mukundpur, Najafgarh, Chhawla and Mahipalpur to the rest of the city. Phase-IV will add about 100 km and Phase-III will add 140 km to the existing network of 190 km.

Work is scheduled to commence by next year and projected to be completed by 2021. Once Phase-IV work is completed, the Delhi Metro network is expected to have a span of about 400 km. PhaseIV will benefit nearly 60 lakh people daily and the regular ridership will be upto 40 lakh.

The deadline for completing two Jogeshwari-Goregaon link bridges has once again been revised to June 2015. The deadline for opening both the East-West link bridges crossing railway tracks has now been pushed to June 2015 from the earlier deadline of December 2014. Once these bridges are ready, the railway crossing at Jogeshwari station and at the under-construction Oshiwara station will be shut permanently. These two elevated structures will be useful to cross railway tracks between Western Express Highway and SV Road. As per the BMC plan, the affected 89 commercial units will be rehabilitated in the space available under the bridge when it is ready.

Project Completion RPP Infra Projects has completed road and storm water drainage construction projects in Tamil Nadu. These projects includes construction of road, storm water drainage and other miscellaneous work on western side of DAE plant site at Indira Gandhi Centre for Atomic Research, Kalpakkam (Phase-II), Tamil Nadu and construction of storm water drain in South B Canal Water Shed at Corporation of Chennai, Tamil Nadu. RPP Infra Projects is engaged in the business of infrastructure development such as highways, roads, bridges, civil construction work, irrigation and water supply projects and power plants.

RAILWAYS

Project Developments Central Railway authorities sent a list of work to the railway board. It is estimated to cost above `400 crore and will strengthen the system. CR general manager, SK Sood, approved the work list during the Works Programme Meeting at CST. The list includes making all long distance platforms at CST capable of running 24-coach trains at a cost of `71 crore; rehabilitation of bridges, signal and telecommunications equipment

The Central government has released its equity contribution of `250 crore for construction work of Delhi MRTS Phase-III projects.

The Ministry of Urban Development released the amount to DMRC as part of the government of India's share towards equity for meeting the cost of Delhi MRTS Phase-III projects for the current 2014-2015 year. The amount shall consist of 25,00,000 shares of face value of `1,000 each. The audited statement of account relating to transfer of this amount of `250 crore to the equity of DMRC shall be furnished to Urban Development Ministry after the close of the financial year, together with a certificate that the amount has been utilised for the purpose for which it was sanctioned. A total amount of `7,883.36 crore was released earlier as equity to DMRC by the Urban Development Ministry.

Development authorities of Noida and Greater Noida signed an agreement with Delhi Metro Rail Corporation (DMRC) for two metro extensions. The two metro sections will be extended from City Centre to Noida Sector 62 and City Centre to Greater Noida.

The 6.675 km City Centre to Sector 62 line will have six stations.

The total project cost is `1,816 crore. The proposed station locations are sectors 34, 52, 59, 61, 62 and Electronic City (NH 24). The City Centre to Greater Noida extension line is 29.7 km long and will have 22 stations. The total cost of the project is estimated at `5,064 crore. In July 2014, an MoU was signed between DMRC and Noida Authority for the Botanical Garden to Kalindi Kunj metro line.

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TRANSPORTATION UPDATE Mumbai Metropolitan Region Development Authority (MMRDA) has received the green signal to construct a bridge over the railway tracks at Currey Road for the monorail. MMRDA received the nod from the Commissioner of Railway Safety (CRS) to go ahead with the launching of a guideway beam over the railway tracks at Currey Road. Construction work on the bridge, which will be constructed perpendicular to the railway tracks, is likely to resume next month with possible completion by May 2015. Meanwhile, work to launch guideway beams and a cantilever bridge over the railway line at Wadala has begun.

The Ahmedabad Metro project received the Union Cabinet's approval on 18 October, 2014. The Union Cabinet approved the `10,773 crore Ahmedabad Metro Phase-I, covering 35.96 km. Phase-I will cover two corridors - North South Corridor covering 15.42 km from APMC to Motera Stadium and East West Corridor covering 20.54 km from Thaltej Gam to Vastral Gam. The project is scheduled to be completed in 2018. The project is being implemented by Metro Link Express for Gandhinagar and Ahmedabad (MEGA) Company, which will be converted into a 50:50 jointly owned company of the Centre and Gujarat government.

Gwalior is set to get a metro rail project, as announced by Madhya Pradesh Chief Minister, Shivraj Singh Chouhan, on 17 October, 2014. He has asked district administration officials to prepare a detailed project report for the metro project. He also laid the foundation stone for MP's first four-storey multi-level parking, estimated to cost `10.75 crore, at City Centre, and a sports complex costing `1.75 crore. Chouhan also announced that a new industrial area was coming up at Sitapur and that a new industrial corridor was being developed from Morena to Gwalior.

Excavation of railway tunnel No. 10 on the Lumding-Silchar broad gauge project was completed on 19 October, 2014. Northeast Frontier Railway (NFR) completed the excavation of the 3.23 km tunnel. This is the longest tunnel in the entire rail project and is situated near the New Haflong Station building, passing below Haflong town in Assam. Work on this tunnel commenced in September 2005. The balance work of the tunnel - benching, lining and invert will be completed before 31 January, 2015. This is one of the 17 tunnels in the entire alignment of Lumding-Silchar gauge conversion project.

Systra and RITES will conduct the pre-feasibility study on the proposed 450 km Delhi-Chandigarh-Amritsar rail corridor project.

The study will explore the possibility of running a bullet train at a maximum speed of 300 kmph on the proposed Delhi-ChandigarhAmritsar route. It will cost `seven crore to undertake the study. The study will identify suitable routes for high speed alignment and station locations using satellite imagery data. The report is expected to be submitted in seven months and will include environment impact, potential passengers as well as an estimated cost of the corridor. French consultant agency, Systra, and Railways subsidiary RITES, have also carried out a study on the Mumbai-Ahmedabad high speed rail corridor project.

The state government of Uttar Pradesh approved the Metro connection to Greater Noida. It received clearance for two major 34 PROJECTS TODAY NOVEMBER 2014

routes. The two routes are a 29.7 km line from Noida City Centre (Sector 32) to Greater Noida, with a cost of `5,064 crore; and a 6.7 km stretch from City Centre to Sector 62, with a cost of `1,816 crore. The UP government and the Centre will share the cost of the City Centre-Sector 62 line on 80-20 basis, while the Noida-Greater Noida line will be funded by the two authorities. DMRC has been appointed as the turnkey consultant for the Metro lines. Both the lines are projected for completion by 2017.

The Union government has given its nod for four railway lines along the China border. The PMO has asked Indian Railways to carry out a detailed engineering survey of the 1,000 km rail lines located in Arunachal Pradesh, Assam, Himachal Pradesh, and Jammu & Kashmir. The Railways has been given time till next month to come up with a cost of the detailed survey which is estimated to be around `200 crore. The identified lines are Missamari-Tawang (378 km) in Assam-Arunachal Pradesh; North Lakhimpur-AlongSilapathar (248 km) in Assam, Murkongselek-Pasighat-TezuParashuram Kund-Rupai (256 km) in Assam-Arunachal Pradesh; and Bilaspur-Mandi-Manali-Leh (498 km) in Himachal PradeshJammu and Kashmir. The detailed engineering survey will take around two years.

AIRWAYS

Project Development Pratt & Whitney engine training centre is projected to be operational by mid-2015. This customer training centre will be a third such facility in the world. It is spread across two acre of land and situated near the international airport in Shamshabad, Hyderabad.

Hyderabad has become the company's third facility after training centres in USA and China. In this training centre, the company's customer will be provided training on the current and new engine models. During the initial stage, the customers will be trained on V2500 and PW1100G-JM engines. The centre will have students from other countries training in Hyderabad and plans to double the number of students by 2018. Telangana IT Minister, K T Rama Rao, has invited the company to set up a training centre in Hyderabad.

SHIPPING INFRASTRUCTURE Project Development

Cochin Shipyard (CSL) has secured 'inprinciple' approval for construction of a large drydock, from the Shipping Ministry. The estimated cost of this project is `1,200 crore, with capital cost for the facility being `487 crore. The unit is expected to be set up in about five years. To meet the expansion capital, CSL is considering a judicious mix of debt and equity options. The company has identified projects for expansion in the short, medium and long term. This will help to maintain the growth momentum. CSL wants to explore the potential in the ship repair business. It has already taken the land on lease in the Cochin Port Trust. The premises of the port will be utilised for setting up an international ship repair facility with ship lift system.

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CONSTRUCTION & SOCIAL SERVICES

REAL ESTATE Project Developments ABIL has launched a premium housing project called Avaanti Residences, in the heart of Pune. It is located at the Tilak Road and Bajirao Road junction. The company will invest `130 crore, excluding the land cost, in executing the residential project. It envisions to generate sales revenue of `250 crore. Avaanti Residences is spread across a two acre complex with a 70 mtr tower. It will have 17 floors and 33 apartments. The project offers three BHK apartments (2,860 sq ft), four BHK (3,460 sq ft) and five BHK duplexes (5,420 sq ft). Each residence will be provided with an average of three parking spots. This housing project will be incorporated with amenities such as a large swimming pool, children's play area, multi-purpose hall and more.

Brigade Group is planning to invest `500 crore in the Gujarat International Finance Tec-City (GIFT City) over the next few years.

The allotment of 1.1 million sq ft of built-up area has been made to Brigade Group for development of commercial, residential, retail mall and hotel projects in SEZ & Non-SEZ areas in GIFT City. The group has also submitted its interest for taking additional 1.7 million sq ft of built-up area to be developed at an estimated investment of `600 crore. The realty firm has a significant presence in southern India, including cities like Bangalore, Chennai, Hyderabad and Kochi.

Essel Group envisions developing smart cities in Madhya Pradesh.

The group will develop about five projects in Madhya Pradesh, with a total investment of `7,500 crore. It has identified cities such as Ujjain, Gwalior, Jabalpur, Sagar, and Dewas. The development of smart cities will be done by undertaking projects in power and water distribution services, municipal solid waste management, sewage treatment, drainage and storm water management. Essel Group expects smart city projects to provide employment to over

20,000 people. This announcement was made on the concluding day of the 'Invest Madhya Pradesh Global Investors Summit- 2014' at Indore. It has already invested `5,000 crore for developing projects in infra and utility. Further, it plans to evaluate projects worth `50,000 crore of a similar nature in the future.

Godrej Properties has entered into an agreement with a land owner to develop a housing project near Mumbai. The realty firm has entered into a development management agreement to develop a property situated in Badlapur, Mumbai Metropolitan Region. The affordable housing project will have 1.3 million sq ft of saleable area. Godrej Properties, the real estate arm of the Godrej Group, is presently developing residential, commercial and township projects spread across 103 million sq ft in 12 cities.

The ICICI Bank-led consortium has signed a milestone debt funding agreement with realty developer, Wadhwa Group. This joint venture is worth about `450 crore. The ICICI Bank-led consortium includes ICICI Home Finance Company. The construction finance, carrying nearly 14 per cent borrowing cost, is for a 12 acre residential project in Mulund. According to the agreement signed last week, the consortium has already paid `150 crore to the developer. This residential project is a joint venture between the Wadhwa Group and another realty developer, which owns the land parcel on LBS Marg, between Nahur and Mulund. The loan disbursement will be made in parts as per the progress of construction. From March 2017, the repayment is expected to be completed in 30 monthly installments.

Mahindra Lifespaces, today launched its second Happiest project in Boisar, Maharashtra. Happiest Boisar is spread over 14 acre of land and will offer one RK, one BHK and two BHK apartments. Each apartment will be in the range of 325 sq ft to 695 sq ft. It offers easier connectivity to Mumbai and Gujarat by local and outstation trains. The units at Happiest will have power backups, elevators, open car park, an amphitheatre, walking track and sufficient open

SPECIAL ECONOMIC ZONE Project Development The government has given its approval to set up SEZs in Andhra Pradesh and Maharashtra. The decision was taken by the Board of Approval (BoA) at its meeting on 18 September of this year. Wipro and Mumbai Futuristic Economic Zone have given their proposals. Wipro has plans to set up an IT/ITES zone on an area of 1.22 ha in Andhra Pradesh. Mumbai Futuristic Economic Zone has proposed to set up two SEZs in Maharashtra. Biotech SEZ will come up over 24 ha and the IT/ITES on 10.47 ha. The government has given additional time to 13 special economic zone developers to execute their projects. This includes developers such as Kerala State IT Infrastructure and Navi Mumbai SEZ.

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CONSTRUCTION & SOCIAL SERVICES spaces for senior citizens. Recently, it was pre-certified by the IGBC (Indian Green Building Council). This project targets the large, under-served home ownership market in India. At present, around 19 million families live either in slums or in low income neighbourhoods on rent. By 2030, this housing deficit may rise to 30 million. Homes will start from `nine lakh enabling people to accomplish the dream of home ownership.

Shanta Shriram Constructions has announced a luxury villa project at Manikonda, near Gachibowli, in Hyderabad. Spring Villas, the gated community project, is constructed on 325 sq yds with a built-up space of 4,000 sq ft. The villas will cost `four crore, each.

Construction work is already in progress and will be completed within two years. It will be vastu compliant and will have centralised security system, solar power, round-the-clock water supply and generator back-up. Other facilities include ample parking space, cafeteria, meditation hall, facilities for indoor and outdoor games, yoga studio, spa and massage centre, and swimming pool among others.

Sunworld Infrastructure is planning to develop a residential complex, 'Sunworld Vandita', at Noida. The residential project is coming up at Yamuna Expressway at Noida, in Gautam Budh Nagar district of Uttar Pradesh. The project will be spread over 10.7 acre of land and comprises 19 towers of G+15 floors with various modern amenities. Gian P Mathur & Associates has been appointed as the architect for the project.The contractor is yet to be finalised. Work on the project is expected to begin by January 2015.

Tata Housing - the property development arm of the Tata Group of companies, is mulling setting up a township of luxurious residential and commercial space in Ahmedabad. The company is in talks with the city-based Venus Group of companies for multiple premium housing projects. It is interested in investing in a three million sq ft property located near Nehrunagar, owned by Venus.

Tata Housing is keen to utilise the opportunities in top metros and Tier-I cities across India. Once the deal is finalised, it will be Tata's second project in Ahmedabad and the company will develop a `1,600 crore integrated township at Vadsar-Kalol road, near Ahmedabad. In 2012, the company had announced an affordable housing project in partnership with Arvind.

Tata Value Homes (TVH) -- a fully-owned subsidiary of Tata Housing Development Company, plans to launch three new 'Value Home' projects. The projects in the Delhi NCR region, Kolkata, and Mumbai metropolitan area will be launched in this financial year.

TVH will develop 12,000 flats which are expected to be ready in phases, spread over seven to eight years. Out of the three new projects, two of them will be under the joint venture model and another one in a development management model. The company envisions working on projects in Africa, Sri Lanka and the Maldives, based on the public-private partnership model. In 2014, around 25 per cent of the buyers were NRIs as compared to 12 per cent in 2013.

Visakh Homes has launched two new residential projects in Chennai. The projects, of approx one lakh sq ft each, will come up 36 PROJECTS TODAY NOVEMBER 2014

at K K Nagar and Oragadam, in Chennai. Both residential projects are expected to be completed by 2015-16. Visakh Homes recently completed and handed over a project, 'Shree Gajanan Apartments', of 20 apartments, at Tambaram West. The company has set a target of building over five lakh sq ft of residential space in the next five years. Visakh Homes is a member of the Sree Kailas Group, which is a diversified conglomerate with interest in paper manufacturing, logistics/industrial parks, and construction and infrastructure activities. The Group has developed six residential projects comprising 120 apartments, at Kochi and Chennai.

INDUSTRIAL & SOFTWARE PARKS Project Developments

Asian Development Bank (ADB) is likely to assist the Andhra Pradesh government in setting up industrial zones as part of the Visakhapatnam-Chennai Industrial Corridor. ADB said that it would establish the industrial zones in the state within six months and with an investment of $2.5 billion. The project includes developing five industrial zones as part of the Visakhapatnam-Chennai Industrial Corridor. These zones will come up in Visakhapatnam, Kakinada, Machilipatnam, Anantapur and Erpedu-Srikalahasti. ADB has also assured that a special officer would be appointed to monitor the project's progress. It will also help the state government in attracting investors from China, Japan, South Korea and European countries.

The development of Manesar-Bawal Investment Region (MBIR), has received environmental clearance from the Ministry of Environment, Forests & Climate Change on 23 September, 2014.

This development is undertaken by Delhi Mumbai Industrial Corridor Development Corporation (DMICDC). It is located in the Rewari district and comprises an area of 402.31 km and 138 villages and two towns. This includes a 152 km area notified under the Bawal Draft Development plan.The EAC recommended environmental clearance for this project, after its meetings held on 21 - 22 April 2014, and 30 July - 1 August, 2014. The ministry has given the EC for this project, based on the provisions of Environmental Impact Assessment Notification - 2006.

Gujarat Hira Bourse (GHB) Jewellery Park began its operations in September 2014. Three units in this park are in operation and around 20 jewellery manufacturers are keen to take the plot. The development and allotment of the land have been put on a fast pace. The gems and jewellery park at Ichhapore will definitely give a boost to this industry in the state. In addition, work is in progress on the designs for the Surat Diamond Bourse (SBD) project at Khajod. It will come up on 2,000 acre of land allotted by the state government. At SBD, all polished diamonds processed in Surat and other regions of the state will be traded.

Adani Group, Future Group, ITC and several other companies have applied for 17 food parks to be approved by the government in the next 2-3 months. The government has received 72 proposals from various companies for 17 food parks. Each park is estimated to attract a minimum investment of about `125 crore. After final

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approval of the project, the company needs to acquire minimum 50 acre of land within the stipulated time. The company is free to decide the location of the project. The government provides `50 crore grant for each project on different cost constituents other than land cost. The Food Processing Ministry had sanctioned 42 projects throughout the country under the scheme (2008-09) of mega food parks. Of this, 25 projects are presently under implementation in various states.

On 16 October 2014, the chief minister, Siddaramaiah, ordered Karnataka Industrial areas Development Board (KIADB) to issue a final notification for acquisition of 2,072 acre of land to develop the Information Technology Investment Region (ITIR). ITIR is an integrated investment region housing IT, ITeS and hardware parks, supported by residential townships, a mini airport, shopping malls, among others. It will cost `one lakh crore and will create 40 lakh job opportunities. The centre is expected to provide `7,000 crore towards developing infrastructure. The project commenced in 2013 and will cover 40 sq km for which 10,500 acre of land is required. This project will be completed in two phases, Phase-I between 2012 and 2020; and Phase-II between 2020 and 2032.

On 22 October 2014, Kerala government's IT project -- Smart City Kochi received complete clearance. Clearance was given during the meeting of State Environment Impact Assessment Authority Kerala (SEIAA-K), of the Ministry of Environment and Forests, following recommendations by the State Expert Appraisal Committee (SEAC). In July 2013, it had obtained the necessary clearance for the first phase of the project.

The project is spread across 246 acre of land with a built up area of no less than 8.8 million sq ft. It will consist of information and communication technology, media, finance, research, and innovation clusters from within India and abroad. This project is a joint venture between Dubai Holdings and the Kerala government.

Smart City Kochi will be opened in March 2015.

Madras Fertilizers (MFL) has plans to develop a portion of its vacant land into a modern logistics park. It is scouting for a joint venture partner and the estimated cost of this project is over `280 crore. The company is located between Chennai Port and Kamarajar Port/L&T Kattupalli Port with road and rail connectivity.

It has around 130 acre of land within its premises and four acre of land at Manali New Town. For this proposed park, around 51 acre of land will be utilised. MFL has already appointed a consultant to study the feasibility of developing this logistics park. The consultant will study the worthiness of the new partner, the financial status

and infrastructure facility. It is has already submitted three reports.

After receiving formal approval from the Department of Fertilizers, the MFL board will issue a tender to select the partner.

Madhya Pradesh is going to have Information Technology (IT) parks and electronic manufacturing clusters. The projects will be in Bhopal and Jabalpur with an overall investment of `170 crore. It will give about 50,000 direct and indirect jobs to people. The proposed IT park premises and the cluster will come up in Barwai village, Bhopal. It will be spread across 212 acre of land, of which 50 acre will be utilised for the electronic manufacturing cluster. The work is scheduled to be completed in two phases. The IT park and electronic manufacturing cluster at Purva, near Jabalpur, will be spread over 62 acre and requires an investment of about `95 crore.

From the 60 acre, 22 acre of land is for the electronic manufacturing park facilities. It is likely to offer about 10,000 direct and indirect jobs. Madhya Pradesh Electronics Development Corporation will be executing the projects.

Infrastructural work will be carried out at Knowledge City. It has received approval from the Cabinet Committee on Economic Affairs (CCEA). The state government of Madhya Pradesh will float the necessary tenders for this project. The entire cost is estimated to be `290 crore. It is located about 15 km away from Ujjain and 17 km from Dewas, near Narwar village, in Ujjain district. The site for the proposed Vikram Udyogpuri has a total area of 442.79 ha. It is projected to generate direct and indirect revenue of `1,20,600 crore by 2040, and employment of 78,000 (direct and indirect) by 2040. After completion of this infrastructural work, it is expected to attract private sector investments of about `13,000 crore.

RETAIL

Project Developments Cavinkare is eyeing the retail segment and has planned to open 50 outlets before December 2014. It has launched Cavin's Parlour outlets to sell its wide range of products. The company will operate on a franchisee model and the stores will be of 150 sq ft size. In addition, the stores will function as stock points for the other retail outlets in the nearby region. The company has plans to expand Cavin's Parlours in different regions of Tamil Nadu mainly Salem, Madurai, Chennai and Trichy, by December 2014. The outlets are precisely for dairy products available to each customer. Cavinkare expects the retail business to generate around `100 crore additional revenue from each state.

COMMERCIAL COMPLEX Project Development Swapnapoorti Projects is developing a commercial complex '11 Mayur', in Pune district of Maharashtra. The complex, coming up in Kothrud in Pune, comprises a G+5 floors building with various modern amenities.

Kanitkar & Kulkarni has been appointed as the consultant for the project; Sunil Vartak & Associates is the architect; and Anish Engineers & Contractors is the civil contractor. Around 25 per cent of the project work is completed.

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CONSTRUCTION & SOCIAL SERVICES Colorado-based casual footwear brand, Crocs, plans to increase its retail presence in India over the next three years. The company is popular for its specialised boat shoes or clogs. During the three years, it is expecting over 200 per cent (from 470 to 1,000) increase in its presence across multi-brand outlets. In the same period, it wants to achieve nearly 300 per cent (from 34 to 100) increase in standalone outlets and kiosks. The company plans further expansion, based on the successful franchise model. Crocs reported a 60 per cent growth in India over the last one year. But, only 30 per cent of the turnover is from clogs and it expects to capitalise on the possibility of manufacturing locally in the coming days.

Hardcastle Restaurants, McDonald's franchisee for West and South India operations, plans to add 250 outlets of the fast food chain within three-five years. Hardcastle will invest upto `850 crore to set up the new outlets. This investment includes adding 175 to 200 McCafe coffee shops. At present, Hardcastle operates 192 McDonald's outlets.

McCafe, which was introduced in India in October 2013, is opened within a McDonald's outlet.

ITC's Wills lifestyle will bank on franchisee stores, as it takes the brand to Tier-II markets. It plans to add 20-25 new stores each year to increase its presence in Tier-II markets. Ten stores have already been opened. ITC will execute the expansion plan through the franchisee partners. The company aims to utilise the franchisee local knowledge for successful expansion. Wills Lifestyle is also banking on its loyalty program to explore newer cities. At present, the company has about 100 stores in 40 cities, of which the majority is company-owned.

Kamaths Ourtimes Ice Creams, brand 'Natural', yesterday opened its first store in Delhi. With the launch of its Delhi outlet, the brand marks its foray into north India. The brand plans to open 100 outlets in the next five years across the country. The company presently has 118 outlets across west and south India.

Marks & Spencer has major plans of expanding its presence in the Indian market. It plans to launch around 40 new stores by the end of 2016. On 9 October 2014, the company launched its second flagship store in Hyderabad. As per the expansion plan, it envisions increasing to 80 stores from its present 42 stores, by 2016. In south India, four stores will roll out by March 2015, of which two will be ready in Hyderabad, by December 2014. At present, it operates 10 brick-and-mortar stores in the south. M&S opened its first store in India in 2001. In April, 2008, it signed a joint venture with Reliance Retail to form M&S Reliance India.

China's Opple Lighting has plans to invest about `600 crore in India over the next three years. It will set up operations and distribution in this country. This includes exclusive brand stores in 30 top cities. The company is expecting to have a cumulative business of `450 crore in the next three years. In the initial stage, Opple Lighting will start with the South by the end of 2015. Later on, the company will focus on metro markets and on Tier-II and Tier-III cities. The prime objective is to make lighting products available at upto 1.5 lakh outlets over the coming years. Opple 38 PROJECTS TODAY NOVEMBER 2014

Lighting has operations in over 50 countries across the globe.

Multi-brand retail chain, V-Mart, aims to expand its store network upto 200 in non-metro cities in the next four years. It envisions opening around 25 stores each year. Apart from Tier-II and Tier-III cities, the company will explore the North East and Southern regions. On 13 October 2014, V-Mart opened its 100th store in Patna and has ambitions to have 114 stores at smaller places by the end of this fiscal year. Presently, it is operating in 86 cities and 12 states. The possible cities identified are Lucknow, Allahabad, a few places in West Bengal, Kishanganj and Purnia in Bihar. A new store in its network will cost about Rs two and half crore to three crore. The primary apparel retailer is expanding at a compound annual growth rate (CAGR) of over 30 per cent.

Warburg Pincus has purchased a minority stake in Kalyan Jewellers, worth `1,200 crore. This takes the jewellery retail chain to `12,000 crore, making it the largest investment in the sector.

The investment will be utilised to come up with a retail chain in the northern and western part of India. It plans to have a retail chain in the Middle East and South East Asia. By July 2015, Kalyan Jewellers will add 28 stores in India. Also, it will build stores in Singapore, Malaysia, Qatar and Kuwait. Kalyan Jewellers is one of the largest jewellery makers and distributors in India. It has built 55 stores across this country in Maharashtra, Gujarat, Punjab, the National Capital Region and in the south too. Apart from this, it has six stores in the United Arab Emirates.

HOSPITALS

Project Developments Apollo Hospitals and Sanofi announced their plans to expand Apollo Sugar clinics in India.

This plan is under Apollo Sugar Clinics (ASCL) - a subsidiary of Apollo Health and Lifestyle. It envisages opening 200 clinics by 2016 to treat only diabetic patients. It plans to open 50 clinics by the end of this year and take the number to more than 200 by 2016. The estimated cost for each clinic will be around `30 to `60 lakh. The sugar clinics will offer cost-effective treatment to diabetic patients and a 360 degree lifestyle management program.

The Telangana government will set up a super speciality hospital at Paternally, in Nalgonda district. This will ensure availability of proper medical care on the Hyderabad-Vijaywada highway. On 14 October 2014, Telangana Chief Minister, K Chandrasekhara Rao, asked the Deputy CM to prepare a proposal for setting up the hospital with a college attached to it. In addition, the CM will personally monitor the development of the five major cities of Hyderabad, Warangal, Karimnagar, Khammam and Nizamabad.

Improving infrastructure in the cities is the prime objective.

Uttar Pradesh Chief Minister, Akhilesh Yadav, laid the foundation stones for three projects in the state, on 15 October, 2014. The foundation stone was laid for a 1,000-bed super specialty hospital to be built by the Medanta Group, in Lucknow. It will be known as Medanta Avadh and will be equipped with 30 operation theatres, 300 beds for critical care, a Unani medical centre, and an

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Ayurvedic medical centre. The hospital will also have a separate research wing. Another project which was launched on the day, was an IT city project to be set up by HCL. The IT city will come with an investment of `1,500 crore and will be spread across 100 acre of land. The foundation stone was also laid for the Indian Institute of Information Technology (IIIT). It is being set up on 50 acre of land at Chak Ganjariya farm in Lucknow. It will be built under the aegis of the Union government, Uttar Pradesh government and the UP Electronics Corporation.

Acropolis -- the new project -- is in sector 108 on the edges of Dwarka, Phase-II, New Delhi. It is spread across approx 40 acre of land and will consist of 23 residential towers with 1,341 flats. The size of the three, four and five BHK will be between 181.16 sq mtr to 603.86 sq mtr. This residential project in Dwarka will possess state-of-the-art facilities such as clubhouse, swimming pool, jogging track, multipurpose hall, yoga pavilion, among others. It follows the green design standards to make it environment-friendly, healthy and cost-effective for the residents.

Project Completion

Marriott International has plans to expand its footprint in India by adding another 49 hotels. This will take its overall operating properties to about 70 by 2018. It wants to explore the potential of Tier-II and Tier-III cities. The 49 properties are presently under various stages of construction. As of now, it has about 6,500 employees in India and is expecting to hire 10,000 more people at different levels by 2018. Presently, the Courtyard by Marriott brand has 11 properties and a further 19 are under construction.

Prime Minister, Narendra Modi, inaugurated the HN Reliance Foundation hospital in Mumbai on 25 October, 2014. The almost 90 year old heritage hospital is located at Khetwadi area in South Mumbai. The hospital was refurbished by Reliance Foundation which joined the management of the hospital in 1997. The hospital comprises a G+19 floor tower with two heritage wings and various modern amenities.

HOTELS & RESTAURANTS Project Developments

Assotech Realty has tied up with Lemon Tree Hotels to manage and operate its serviced residences. The first project under the brand of Sandal Suites is of 210 apartments and will be launched in Noida, in 2015.The companies plan to launch eight to ten similar projects in cities like Ahmedabad, Goa, Hyderabad and Bangalore.

It will be completed in a phased manner over the next seven years, at an estimated cost of `800-900 crore.In the initial phase, Lemon Tree Hotels Group (LTHG) will provide the design consultancy to the project. Later, it will manage the day-to-day operation of the serviced apartments.

Berggruen Hotels launched its 16th property 'Marigold' in Jaipur, Rajasthan. Berggruen Hotels operates under the brand name of Keys Hotels and Resorts. Keys Hotels Marigold will be spread over an area of 2,000 sq mtr and will comprise 70 rooms and five suites.

The managing director of Chintels Group has announced the launch of its premium residential project in Dwarka. Chintels

StayWell Hospitality Group plans to add 18 hotels in India, by 2017. As per the expansion plan, it will target mid and up-scale segments. The investment plan is above `120 crore. At present, the group has two hotels in India situated at Jaipur and Gurgaon.

Both the properties operate under the Leisure Inn brand. The Group has another brand called Park Regis. StayWell Hospitality Group wants to focus on both, major metros as well as smaller cities. It is keen to add hotels in Mumbai, Goa, Delhi-NCR, Bangalore, Jaipur, Chennai, Hyderabad and Ahmedabad among others. In the first phase, which is about six months, the group expects to open five more hotels - two Leisure Inn in Mumbai, and a Park Regis each in Goa, Jaipur and Hyderabad.

Unique Mercantile, the Indian rights holder of hospitality major, Wyndham Hotel Group's Howard Johnson brand, plans to invest `1,715 core in India. The company has exclusive development rights to the brand, Howard Johnson, for the next 15 years in India.

It envisages opening 34 Howard Johnson properties across the country by 2020. The company is keen to explore pilgrimage destinations such as Tirupati and Shirdi. It wants to tap into small cities like Lucknow and Bhubaneshwar, besides metros like Mumbai and Delhi-NCR. In Bangalore, last week, Unique Mercantile opened the first Howard Johnson hotel. From the 34 properties, five will be wholly owned by Unique Mercantile, while 10 will be

OTHER COMMUNITY SERVICES Project Development Siemens has obtained approval from the Gujarat government to set up six more centres of excellence in the state.

The centres of excellence will be set up in the state's engineering colleges with an investment of `714.90 crore.

These centres will be set up at colleges in Morbi, Rajkot, Bhavnagar, Patan, Jamnagar and Mehsana. These six centres will be in addition to the state government's already approved five centres of excellence, under PPP mode, with the co-operation of Siemens Industry Software (India). Siemens has already invested about `500 crore for setting up those five centres, for which MoUs had been signed two years back. In August 2014, the company approached the Gujarat government for approval to set up six more such centres in the engineering colleges of the state, within the company's current fiscal year ending on 30 September.

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CONSTRUCTION & SOCIAL SERVICES joint ventures; 15 will be under management contracts (with third parties); and four will be on lease models.

TOURISM & RECREATION

Project Developments The Golden Temple Plaza is set to be completed by the end of October 2014. The project is being implemented by the Punjab Heritage & Tourism Promotion Board. It involves development of the Golden Temple entrance plaza in Amritsar district of Punjab.

Construction work on the `78 crore project is almost complete.

The entrance plaza is to come up over an area of 9,410 sq mtr and will include facilities like an interpretation and information centre for tourists, VIP lounge, bank, ATM, airlines and railway inquiry, a multi-purpose hall, security and services area. An auditorium with a seating capacity of 100-150 persons will be built so that a visiting dignitary can address the media.

Dumbhal amusement park in Surat, Gujarat is likely to be completed in 2016. The park is being implemented by Raj Green Amusement Park in two phases. Phase-I comprises entertaining clubhouse and water park and Phase-II comprises a five star hotel, Bollywood theme park, snow park, international bird park, including various modern amenities. The project is coming up with an investment of `140 crore and will be spread over 16 acre of land. Work on Phase-I and Phase-II is underway with completion scheduled for December 2015 and December 2016, respectively.

The Sabarimala High-Powered Committee has given the green signal to the ropeway project. It was given approval during the meeting held in Kochi. Once the final agreement is signed, the company which is shortlisted, has to invest `15 crore and implement this project in two years. This project will be implemented on BOT basis and will link Pampa with Sabrimala for transporting prasadam ingredients and free food times, and for providing emergency evacuation. The committee was concerned about the projects from the negative attitude of Travancore Devaswom Board (TDB). After giving clearance to the projects for implementation, they were not given the go-ahead by TBD. But the committee has decided to undertake work on two of the four queue complexes to be built on the trekking path between Marakoottam and Saramkuthi before the pilgrimage season. It will carry out periodical reviews of the several ongoing projects.

Uttarakhand government is set to get its first multi-facility international stadium as announced by the government. The `200 crore project is likely to come up in the next one and half years.

The Uttarakhand government has announced that the 'bhumi pujan' at the site will be conducted next month. The stadium will be located at Greater Haldwani area, spread across 30.2 ha of land.

The stadium will have cricket and football grounds, a track for 800 metre race, a hockey field, badminton courts, a lawn tennis court, a boxing ring, a swimming pool and a hostel for 150 sportspersons.

40 PROJECTS TODAY NOVEMBER 2014

Greater Noida will have a 2,000 acre ecological park on the city's forest land. The consultant has submitted the necessary design proposal of this project. The project will be implemented by Uttar Pradesh government it is estimated to cost above `100 crore and will be completed in three phases. Work is scheduled to commence by early 2015. This will include a Wetland Biodiversity Park covering the present Surajpur Wetland area of 339 acre; a Forest Park in the 1,278 acre Murhidpur zone; and a 'Habitat Park' in place of the 354 acre Gulistanpur zone. This ecological park will boost tourism in Greater Noida. It will have a bird museum, a butterfly conservatory, a flower garden, bamboo grove, camping sites, a health resort with yoga and meditation facilities, children's play area, forest sports, and a souvenir shop. The ecological park will be the first of its kind in this region.

WATER & SEWERAGE PIPELINE & DISTRIBUTION Project Development

The Margao sewerage project is likely to be commissioned in March 2015. The sewerage project is being implemented by Sewerage and Infrastructural Development Corpn. of Goa (SIDCGL), with an investment of `200 crore. SIDCGL has undertaken only part of the Margao sewerage project as a portion of it is being handled by the PWD, under the Japan International Cooperation Agency (JICA).

SIDCGL's scope of work includes laying a sewerage network covering Malbhat, Pajifond, Aquem, Costa ground, Vidyanagar etc.

The total length of the network is around 50 km and the trunk main is around eight km.

IRRIGATION

Project Completion Bihar Chief Minister, Jitan Ram Manjhi, inaugurated the Durgawati reservoir on 15 October 2014, at Badalgarh, in Rohtas district. The foundation of the reservoir in Rohtas district is spread over an area of 627 sq km and was laid

by Babu Jagjivan Ram, on 4 June, 1976. This reservoir is expected to irrigate 39,620 ha of land in different areas of Kaimur and Rohtas districts. If the water demand for irrigation of the two districts is fulfilled, the surplus water will be given to other districts.

The Water Resources Minister announced that the irrigation work of the project would be completed soon. Durgawati reservoir has been possible due to the firm commitment by former chief minister, Nitish Kumar.

41-44] Statistics.qxp

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STATISTICS Projects Investment: By Industry September-13 Sector Manufacturing

September-14

No. of Projects

Invst. (``Crore)

Share (%)

No. of Projects

Invst. (``Crore)

Share (%)

3,164

1,440,626

19.94

3,260

1,618,128

19.97

Food & Agro Products

514

27,399

0.38

621

45,193

0.56

Textiles

279

10,127

0.14

322

18,004

0.22

Basic Chemicals

621

550,326

7.62

622

509,239

6.29

Fertilisers

83

85,554

1.18

83

96,534

1.19

126

7,579

0.10

154

11,442

0.14

Petrochemicals

17

90,899

1.26

17

98,619

1.22

Petroleum Products [Refinery]

73

347,248

4.81

63

281,419

3.47

Plastic & Plastic Products

133

5,807

0.08

132

10,972

0.14

Rubber & Rubber Products

38

7,982

0.11

29

10,424

0.13

Paper & Paper Products

83

13,046

0.18

80

13,073

0.16

326

122,200

1.69

329

141,655

1.75

283

119,733

1.66

285

138,831

1.71

680

603,095

8.35

643

688,069

8.49

620

482,049

6.67

589

547,964

6.76

60

121,046

1.68

54

140,105

1.73

238

40,516

0.56

205

104,686

1.29

Non Electrical Machinery

92

9,002

0.12

78

7,735

0.10

Electrical Machinery

82

9,871

0.14

71

8,052

0.10

Electronics

64

21,644

0.30

56

88,899

1.10

216

56,231

0.78

236

72,091

0.89

899

181,451

2.51

893

236,410

2.92

591

125,513

1.74

585

180,640

2.23

Coal

298

45,011

0.62

330

82,433

1.02

Petroleum Oil & Gases

265

58,772

0.81

228

79,457

0.98

2,257

2,573,873

35.63

2,309

2,755,790

34.02 32.90

Drugs & Pharmaceuticals

Non Metallic Mineral Products Cement & Asbestos Basic Metals Iron & Steel Non Ferrous Metals Machinery

Transport Equipment Mining Mineral Fuels

Electricity & Non Conventional Energy Electricity

1,644

2,519,321

34.87

1,663

2,665,522

Hydel Based Power

947

370,636

5.13

975

390,435

4.82

Thermal Based Power

677

2,023,591

28.01

668

2,123,445

26.21 1.87

Nuclear Based Power Non Conventional Energy Services & Utilities

20

125,095

1.73

20

151,642

613

54,552

0.76

646

90,267

1.11

39,176

2,648,087

36.66

41,460

3,077,581

37.99 0.20

Hotels & Restaurants

422

16,342

0.23

393

16,095

Community Services

9,566

324,408

4.49

10,758

400,388

4.94

19,112

1,748,794

24.21

20,361

2,056,004

25.38

Transport Services Roadways

15,990

776,323

10.75

16,630

830,594

10.25

Railways

813

560,427

7.76

866

708,479

8.75

Airways (Aviation Infrastructure)

147

65,730

0.91

156

62,912

0.78

Shipping Infrastructure

323

166,128

2.30

349

220,068

2.72

84

36,912

0.51

108

35,198

0.43

1,536

128,243

1.78

19

5,566

0.07

45

38,083

0.53

35

62,075

0.77

Pipelines Power Distribution Communication Services Commercial Complexes

1,762

39,956

0.55

1,861

48,773

0.60

Real Estate

6,951

219,406

3.04

6,637

225,040

2.78

Industrial & Software Parks

739

208,114

2.88

734

203,508

2.51

Storage & Distribution

575

52,939

0.73

677

65,652

0.81

2,090

379,967

5.26

2,222

413,480

5.10

47,586

7,224,004

100.00

50,144

8,101,389

100.00

Irrigation Total

PROJECTS TODAY NOVEMBER 2014 41

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STATISTICS Projects Investment: By States September-13 States

September-14

No. of Projects

Invst. (``Crore)

Share (%)

No. of Projects

Invst. (``Crore)

Share (%)

3,943

767,590

10.63

2,133

612,501

7.56

Arunachal Pradesh Assam

158

155,973

2.16

172

166,475

2.05

628

89,754

1.24

707

105,589

1.30

Bihar

1,830

190,127

2.63

2,063

223,272

2.76

Chhattisgarh

1,756

421,354

5.83

1,789

454,662

5.61

998

100,384

1.39

1,027

101,628

1.25

States Andhra Pradesh

Delhi Goa

396

11,511

0.16

425

15,420

0.19

Gujarat

2,590

476,640

6.60

2,818

586,748

7.24

Haryana

1,711

114,601

1.59

1,899

167,120

2.06

Himachal Pradesh

518

79,275

1.10

566

80,594

0.99

Jammu & Kashmir

415

95,752

1.33

445

116,786

1.44

Jharkhand

1,598

277,330

3.84

1,901

298,478

3.68

Karnataka

3,878

481,803

6.67

4,066

525,199

6.48

Kerala

1,333

169,916

2.35

1,399

171,601

2.12

Madhya Pradesh

3,463

490,839

6.79

3,387

541,663

6.69

Maharashtra

8,253

835,710

11.57

8,247

901,063

11.12

Manipur Meghalaya Mizoram Nagaland

63

7,178

0.10

77

10,982

0.14

139

11,936

0.17

126

13,157

0.16

64

7,434

0.10

63

7,842

0.10

24

3,842

0.05

28

9,799

0.12

Odisha

2,244

711,497

9.85

2,650

688,551

8.50

Punjab

1,196

86,209

1.19

1,239

83,083

1.03

Rajasthan

1,789

201,702

2.79

1,871

235,486

2.91

80

23,975

0.33

80

25,512

0.31

2,825

433,456

6.00

2,880

515,787

6.37

0

0

0.00

1,948

254,816

3.15

Sikkim Tamil Nadu Telangana Tripura

166

18,926

0.26

172

20,721

0.26

2,201

281,068

3.89

2,351

361,554

4.46

Uttarakhand

633

55,878

0.77

806

60,411

0.75

West Bengal

1,777

224,330

3.11

1,887

252,640

3.12

Uttar Pradesh

Union Territories A & N Islands

56

330

0.00

47

624

0.01

122

1,707

0.02

124

1,779

0.02

Dadra & Nagar

66

494

0.01

63

515

0.01

Daman & Diu

43

513

0.01

47

469

0.01

Lakshadweep

7

156

0.00

7

156

0.00

7,490

0.10

109

9,513

0.12

Chandigarh

Puducherry

112

Multi-State, Offshore & Unallocated Multi States

399

346,660

4.80

437

419,798

5.18

Offshore

86

35,798

0.50

61

53,628

0.66

Unallocated

26

4,866

0.07

27

5,766

0.07

47,586

7,224,004

100.00

50,144

8,101,389

100.00

All India

42 PROJECTS TODAY NOVEMBER 2014

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Index of Industrial Production: Sectoral & Use-based Aug 2014

Apr-Mar 2011-12

2013-14

Apr-Aug

Aug

2014-15

2014

Index

Apr-Mar 2012-13

Apr-Aug 2013-14

2014-15

Y-O-Y increase (%)

Sectoral Indices Mining & Quarrying

116.60

125.5

124.7

120.8

2.6

-2.3

-0.6

2.5

Manufacturing

172.90

183.2

181.9

179.6

-1.4

1.3

-0.8

1.8

Electricity

184.10

155.2

164.7

182.3

12.9

4.0

6.1

11.7

Use-based Classification Basic Goods

164.90

153.6

156.8

164.3

9.6

2.4

2.1

8.6

Capital Goods

217.40

251.6

242.6

242.2

-11.3

-0.6

-3.6

4.3

Intermediate Goods

152.50

146.7

151.3

152.8

0.3

1.6

3.1

2.4

Consumer Goods

159.90

190.6

185.5

171.5

-6.9

2.4

-2.7

-4.9

Consumer Durables

218.70

301.2

264.4

233.6

-15.0

2.0

-12.2

-12.9

Consumer Non-durables

136.60

146.9

154.2

146.9

-0.9

2.8

5.0

0.9

General

166.10

172.2

172.1

171.5

0.4

1.1

-0.1

2.8

Source: Central Statistical Organisation

Industrial Entrepreneur Memoranda `Crore

No. of IEMs filed Month 2011-12

2012-13

2013-14

2014-15

2011-12

2012-13

2013-14

2014-15

Apr

264

252

222

157

69,116

64,078

29,991

47,655

May

411

275

223

115

555,533

79,726

46,425

4,624

Jun

382

207

173

102

138,475

27,950

13,548

8,967

Jul

298

302

199

126

57,425

93,704

87,543

1,82,574

Aug

322

215

174

156

60,907

24,566

70,825

15,667

Sep

323

254

206

80,715

19,834

60,098

Oct

228

192

138

116,917

35,107

21,918

Nov

276

172

192

43,810

16,534

35,107

Dec

272

195

180

37,407

27,367

25,123

Jan

240

192

179

59,433

48,882

13,350

Feb

246

214

211

50,365

32,294

36,015

Mar

278

288

200

69,204

61,825

22,138

Apr-Mar

3,540

2,758

2,297

1,339,307

531,867

462,081

Apr-Aug

—

—

—

—

—

—

829

107,179

Source: SIA, Ministry of Commerce & Industry

PROJECTS TODAY NOVEMBER 2014 43

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STATISTICS ERIL INDEX OF COST OF PROJECT INPUTS: SEPTEMBER 2014 Wholesale Price Index: 2004-05=100 Index

Y-o-Y Increase (%)

Increase since March (%)

2014-13

2013-12

2014

2013

170.8

3.9

-0.1

2.0

-1.2

Structural clay products

189.1

8.2

6.1

2.5

4.3

Cement & lime

167.7

1.9

-4.2

2.2

-4.5

165.8

1.3

-2.0

-1.1

-0.7

Ferrous metals

156.1

1.7

-2.0

-1.1

-0.8

Non-ferrous metals

168.5

2.1

2.3

1.3

2.2

Machinery & Machine Tools

134.6

2.5

2.3

1.1

1.5

Industrial machinery

152.2

1.8

2.5

0.3

1.3

Construction machinery

141.4

3.7

0.2

2.8

-0.3

Air-conditioners & refrigerators

120.8

4.7

1.9

1.2

1.5

Non-electrical machinery

127.3

2.7

0.8

2.3

1.1

Electrical machinery & batteries

138.4

1.5

2.4

0.0

1.6

Electrical Accessories, wires & cables

156.4

4.3

4.3

3.2

7.1

Transport Equipment & Parts

136.1

0.9

3.8

0.2

2.0

Automotives

135.2

0.4

4.3

0.1

2.2

Auto parts

137.6

3.1

2.1

1.1

1.6

Composite ERIL Index for Project Inputs

150.5

1.8

0.4

0.1

0.7

Overall WPI

185.0

2.4

7.0

2.6

6.2

Non-metallic Mineral Products

Basic Metals, Alloys & Metal Products

Foreign Direct Investment Inflows (in US$ in million) Equity FIPB Route/ RBI Automatic

Equity Capital

Reinveste Earnings+

Other Capital

Total FDI Flows

2000-01

2,339

61

1,350

279

4,029

2001-02

3,904

191

1,645

390

6,130

2002-03

2,574

190

1,833

438

5,035

2003-04

2,197

32

1,460

633

4,322

2004-05

3,250

528

1,904

369

6,051

2005-06

5,540

435

2,760

226

8,961

2006-07

15,585

896

5,828

517

22,826

2007-08

24,573

2,291

7,679

300

34,843

2008-09

31,364

702

9,030

777

41,873

2009-10 (P) (+)

25,606

1,540

8,668

1,931

37,745

2010-11 (P) (+)

21,376

874

11,939

658

34,847

2011-12 (P)

34,833

1,022

8,206

2,495

46,556

2012-13 (P)

21,825

1,059

9,880

1,534

34,298

Finacial Year (April-March)

2013-14 (P)

24,299

984

9,047

2,066

36,396

2014-15 (Apr- Aug, 2014)

12,014

375

3,451

1,605

17,445

Note: FDI inflows do not include Euro (GDR/ADR) Issues *Includes advances pending allocations, stock swapped, etc.

Source: dipp.gov.in

44 PROJECTS TODAY NOVEMBER 2014

45] PV Next issue.qxp

11/10/2014

4:23 PM

Page 5

46] Last Leaf.qxp

11/10/2014

4:24 PM

Page 46

LAST LEAF What next Montek? ith the decommissioning of Planning Commission there is a big question mark over future role of its Deputy Chairman, Montek Singh Ahluwalia. Though there is an option to make him the Governor of Manipur and send him to North East, the government is not thinking on those lines. Some people in the government are of the opinion that the present government should make most of his knowledge and experience to further its agenda. "Yes, he can be part of government's sanitation programme. He has good knowledge on spending on toilets", somebody in the government supported the view. But knowing the amount he spent on renovating the toilets of Yojana Bhavan, government is wary of making use of the services of Deputy Chairman of PC as he may finish off the entire budgeted amount within few months of the commencement of the programme.

Alternatively, there is also a proposal to ask him to look after some of the perennially sick PSUs as he has to his credit of coming out with 'zero loss to exchequer theory' when CAG had alleged 1.76 lakh crore loss in 2G scam. Montek may have some tricks up his sleeves to prove that the sick PSUs are in reality not bleeding red.

Some people also suggest that he should be sent to some worst drought affected areas of the country where he can lead others by an example by living on bare Rs 28 per day which was the amount in his opinion is enough to live comfortable life in rural India.In any case there is near unanimity in the ruling alliance that the veteran IMF returned economist should not be allowed to sit idle after leaving PC. If he does, who knows he too may use the idle time to ink his memoirs which is the last thing this government expects him to do at this juncture.

W

Dowry loo?

23-year-old woman split with her husband in Chhattisgarh's Raigarh district and walked out of her inlaws' home after they failed to build a toilet at home. Helpless husband has reportedly approached the PM for help to make him one of the first beneficiaries of his sanitation programme to save his marriage. But Modi has reportedly advised the husband to follow his footsteps, that is, to remain single which according to him will solve all his problems.

A

Bullets and bullet trains apan has promised India to provide technology to run Bullet trains which was made public when our Prime Minister visited that country recently. Not to be left behind its rival, China too has offered India Bullet train technology. And our another 'friendly' neighbour on the North West too wants to give India a helping hand in this regard. But considering its poor financial and political condition it has restricted itself to send just bullets from across the border and its army is regularly firing them at our Jawans in border!

J

Mixed reactions for Mangalayan he reactions to India's successful first interplanetary mission to planet Mars are mixed. Though ISRO was flooded with congratulatory messages there were some people who criticized India's premier space research organization. For example, Indian Pilots' Guild has criticized ISRO for sending spacecraft unmanned. The Guild fears that similar exercise may be attempted in normal aero planes too and if that happens their profession itself may become redundant and thousands of pilots may become jobless.

But ISRO has clarified that the reason for sending the spacecraft unmanned was due to lack of clarity on LTA (Leave Travel Allowance) issue. "Imagine ISRO sends someone in the spacecraft to Mars and he comes back claims his LTA after the journey. The LTA bill itself would have far exceeded the cost of the project," an ISRO official confided on the condition of anonymity. However, the government has clarified that people travelling in spacecraft are not eligible for LTA as the mode of transport, that is, spacecraft, is not covered under LTA rule.

According to the rule book only those who travel by road vehicles, railways or aero planes can claim LTA. Among the political parties, the Congress Vice President is elated - not because Mangalayan launch was done during UPA regime but for his famous 'escape velocity' theorem becoming true. He believes he deserved a Nobel award for his observation.

Even the RJD chief Lalu Prasad Yadav too is happy. As he has been barred from contesting elections in India, he is now exploring the chances of fighting elections in the Mars!

Similarly, BJP veteran Advani who has lost all hopes of becoming Prime Minister on Mother Earth, this Mars adventure has given a new ray of hope.

Many industrialists too have shown interest in the event. Many IT companies are planning to set up their development centres in Mars to circumvent the stringent US rules. Jindals and Adanis are also planning a trip to Mars to find out any takeover opportunities there. Some unidentified people have also called up ISRO to find out whether there are any tax heavens in Mars.

On the other hand, our 'friendly' neighbour has reportedly written to UN to consider the Mars planet as disputed. That country in our neighbourhood (name of the country withheld due to security reasons) is thinking of sending some ultras to find out new opportunities and avenues there.

However, Rajnikant Fan Club is greatly disappointed and let down by the people, media and the government. After all it was Rajni who had landed in Mars first!

T

Modi's Swachh Bharat odi would be wielding a broom on October 2nd. No, he is not joining Kejriwal's Aam Admi Party but will be launching Mission Swachh Bharat on that day. It is Modi's style of leading by example - make everyone sweepers! And one of his favourite ministers has already followed the suit! After all sweeping doesn't need any education qualifications.

Poor Arvind Kejriwal has now to look for newer ideas.

M

ZOOM Lens Disclaimer: "Stories appearing on Last Leaf news spoofs and are works of fiction. Readers are advised not to confuse these with real incidents. Any resemblance of spoofs to actual people, living or dead, or events, past, present or future is purely coincidental".

46 PROJECTS TODAY NOVEMBER 2014

47IBC] Acrex India 2014.qxp

11/10/2014

4:24 PM

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48 BC] Tata Bluescope.qxp

11/10/2014

4:25 PM

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